Pandox buys more Dalata shares after rejected takeover proposal

Dalata Hotel Group PLC on Monday noted an announcement that Pandox Ireland DAC has purchased 1.7 million shares in the Dublin-based hotel operator.

The announcement came on Friday from a consortium of Stockholm-based hotel developer Pandox AB and Oslo-based real estate company Eiendomsspar AS. It said Pandox Ireland purchased the shares, which represent around 0.8% stake in Dalata, at €6.30 each, about 539 pence, for €10.7 million in total.

Dalata shares were untraded on Monday morning, having last traded on Friday at 523p, about €6.11. Dalata has a market capitalisation of €1.30 billion.

Dalata noted that in on June 2 it received an unsolicited, non-binding proposal from the consortium regarding a possible €6.05 per share cash takeover offer. The board unanimously rejected this proposal, saying it ‘materially undervalued [Dalata] and its prospects’.

It further noted that the consortium’s put-up-or-shut-up deadline is on July 15.

Following Pandox Ireland’s purchase, Dalata said the consortium has an approximate 9.6% shareholding in the company. It said the consortium has not made an offer for the company at the €6.30 price that it paid for the 1.7 million shares.

Dalata, which started a formal sales process on March 6, advised shareholders to take no action in relation to the Pandox consortium’s announcement.

Dalata furthermore said it continues to speak with parties who are participating in the sales process, and who have submitted revised non-binding cash acquisition proposals.

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