In a firm show of resolve, Dalata Hotel Group has slammed the door on an unsolicited €6.05-per-share cash approach from the Pandox–Eiendomsspar partnership, branding the proposal a glaring undervaluation of Ireland’s largest hotel operator.
Dalata’s board—already running a formal sales process (FSP) as part of a broader strategic review—wasted little time before issuing a unanimous rejection. Even in the notoriously polite world of deal announcements, the subtext was unmistakable: thanks, but no thanks—come back when you understand our worth.
Why the snub?
At first glance, a headline price of 605 cents might look generous; it represents a tidy premium to where the shares traded before rumours of a sale began swirling in March. But Dalata’s directors have done the maths. The group controls 53 hotels, a well-oiled development pipeline, and a balance sheet that weathered the pandemic better than many peers. With Irish and UK occupancy snapping back to record levels and RevPAR still climbing, management believes value will only fatten from here.
More crucially, the Pandox consortium declined to join the board-run sales process—an early sign, Dalata feels, that the Swedish-Norwegian duo were unwilling to meet the same disclosure and timetable obligations demanded of other bidders. By ducking the data-room drill, Pandox forfeited its opportunity to sharpen the pencil.
Clock is ticking for Pandox
Under Irish Takeover Rule 2.6, the consortium now has until 5 p.m. (Dublin), 15 July to “put up or shut up”: either table a binding Rule 2.7 offer or announce it is walking away for at least six months. The Takeover Panel rarely grants extensions without compelling cause, so the midsummer deadline is real.
What next for shareholders?
For the moment, Dalata urges investors to sit tight. Several unnamed suitors remain inside the FSP’s tent, each having fired in a non-binding proposal. If any sees strategic or synergistic sparkle that Pandox overlooked, a bidding contest could still break out.
Yet nothing is guaranteed. Prospective buyers may balk at the very valuation uplift Dalata is chasing. And while trading momentum is strong, the hotel cycle can turn as swiftly as it recovers; the board’s definition of “full value” may prove elusive if financing costs creep higher through 2025.
Still, yesterday’s brusque rebuttal sends a clear message: Dalata believes it controls its own destiny—and won’t relinquish it cheaply. Pandox must now decide whether to dig deeper or bow out. Either way, the coming six weeks promise to test convictions on both sides of the negotiating table.
Read the full article at BloomBerg.com
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