Scandinavian companies make €1.3bn bid for Ireland's largest hotel group Dalata

Reuters

Scandinavian property companies Pandox AB and Eiendomsspar AS have jointly proposed to buy Ireland's largest hotel group Dalata for €1.3 billion.

Dalata operates 55 hotels under the Maldron and Clayton brands, mostly in Ireland and the United Kingdom, and aims to open new hotels in Europe, including in Berlin and Madrid.

It launched a strategic review in March to explore options for enhancing shareholder value, including a potential sale.

The bid proposal comprises a cash offer of €6.05 per ordinary share of Dalata, representing a premium of about 5 per cent to Dalata's closing price on Monday.

Norway-based Eiendomsspar is the second largest shareholder in the Irish group with a stake of around 8.8 per cent and in Pandox, in which it has a stake of around 8.5 per cent.

Pandox and Eiendomsspar have until July 15th to make a formal offer for Dalata or walk away, under Irish takeover rules.

Sweden-based Pandox AB specialises 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 per cent last year to €234.5 million as revenue grew 7.3 per cent to €652.2 million, driven by additions to its portfolio over the past two years.

At its Capital Markets Day last year, Dalata outlined its “2030 Vision” strategy, aiming to expand its portfolio to 21,000 rooms across Ireland, the UK and continental Europe.