(Reuters) -A consortium consisting of property owners Pandox AB and Eiendomsspar AS have proposed to buy Ireland's largest hotel group Dalata for 1.3-billion-euro ($1.48 billion). The proposal
Dalata Hotel Group Declines €1.3 Billion Buyout Offer from Pandox
By Anandita Mehrotra
(Reuters) -Ireland's largest hotel group Dalata on Tuesday rejected a 1.3 billion euro ($1.48 billion) buyout proposal from Scandinavian property companies Pandox AB and Eiendomsspar AS for "materially" undervaluing it.
Dalata, which launched a strategic review in March, said Pandox was not participating in its ongoing sale process, which has drawn interest from other potential bidders.
The Irish group operates 55 hotels under the Maldron Hotel and Clayton Hotel brands, mostly in Ireland and Britain, and aims to expand its portfolio to 21,000 rooms across Ireland, the UK and continental Europe under its "2030 Vision" strategy.
The proposal from the groups had comprised a cash offer of 6.05 euros per ordinary share of Dalata, representing a premium of about 5% to Dalata's closing price on Monday.
Shares of Dalata closed up 5.2% at 6.06 euros on Tuesday, their highest since May 2019.
It said it continues to engage in "constructive discussions" with other parties who have submitted initial non-binding proposals, without naming who they were.
The Pandox-led consortium did not immediately respond to a request for comment on the rebuff by Dalata.
Under Irish takeover rules, Pandox and Eiendomsspar had until July 15 to make a formal offer for Dalata or walk away.
Norway-based Eiendomsspar is the second largest shareholder in the Irish group with a stake of around 8.8% and in Pandox, in which it has a stake of around 8.5%.
Sweden-based Pandox AB specializes in the ownership, development and leasing of large hotel assets in major cities across Sweden and northern Europe.
It has been expanding its portfolio through acquisitions and leases in key European cities including Stockholm, Berlin and Brussels.
Dalata's adjusted core profit rose 5.1% last year to 234.5 million euros as revenue grew 7.3% to 652.2 million euros, driven by additions to its portfolio over the past two years.
($1 = 0.8755 euros)
(Reporting by Yadarisa Shabong and Anandita Mehrotra in Bengaluru; Editing by Janane Venkatraman, Susan Fenton and David Evans)
