Pandox and Eiendomsspar submit possible offer for Dalata Hotel Group

(Sharecast News) - Shares in Irish hotels operator Dalata Hotel Group were up double digits in early trading after a consortium including hotel property company Pandox submitted a possible offer for the firm.

Pandox, which teamed up with real estate outfit Eiendomsspar, made an all-cash offer of �6.05 per ordinary share to acquire Dalata, valuing the business behind the Maldron and Clayton Hotel brands at �1.3bn.

Eiendomsspar already holds a beneficial interest in approximately 8.8% Dalata's ordinary shares and the consortium expects to form a company that will be indirectly owned or controlled by Pandox and Eiendomsspar for the purposes of the implementation of the proposal.

The consortium noted that Dalata was currently engaged in a formal sale process and pointed out that it has not participated in that process to date. However, it believes its proposal will deliver "tangible and certain value" for Dalata shareholders, fully in cash and at a "meaningful premium".

Pandox and Eiendomsspar said: "As established hotel investors with deep knowledge of the European hospitality sector, and experience from successfully executing similar transactions in the UK and Ireland, the consortium is well-positioned to support Dalata's business and long-term growth ambitions.

"The consortium is currently in negotiations with a reputable European hotels' operator to conclude a framework agreement for the operation of the Dalata hotels should the consortium acquire Dalata. Such operator shares the consortium's commitment to long-term profitable and sustainable growth."

As of 1010 BST, Dalata shares were up 10.87% at 520.0p.

Reporting by Iain Gilbert at Sharecast.com