Swedish hotel owner Pandox has increased its stake in the Dalata Hotel Group from 8.8% to 9.6%, but has not made any fresh moves regarding a takeover for the Irish group following its recently rejected buyout proposal.
Pandox and Norwegian hospitality group Eiendomsspar proposed a joint €1.3bn takeover of Dalata – which owns the Clayton and Maldron hotel brands across Ireland, the UK, the Netherlands, Germany and Spain – at the start of this month.
Even though no formal bid was tabled, the proposal was swiftly rejected by the Dalata board on the grounds of it undervaluing the business, in their eyes.
Dalata launched a strategic review of its entire business in March, with all options – including a complete sale of the business – being on the table.
Despite Pandox increasing its stake in Dalata, it has not proposed any upgraded offer for the business.
Indeed, since the Scandinavian proposal, no firm offer has been reported as yet, although there has been interest.
Dalata’s Board has advised shareholders to refrain from taking any action regarding the Pandox Consortium’s announcement. The Board added that it is still in the process of engaging with parties that have submitted revised proposals to acquire the entire share capital of Dalata.
Meanwhile, French financial services giant BNP Paribas has also taken a 2.6% stake in Dalata.
