Two Scandinavian companies make €1.27B bid for Dalata

DUBLIN — Stockholm-based Pandox AB and Oslo-based Eiendomsspar AS have made an all-cash bid for Dublin-based Dalata Hotel Group valued at €1.27 billion ($1.48 billion).

The two companies announced a non-binding proposal of €6.05 per share, a 5% premium on the current value of Dalata shares. Eiendomsspar already owns 8.8% of Dalata and 24.8% of Pandox.

According to a news release, the partners said the deal would likely be in cash. If the deal is finalized, Eiendomsspar’s current shares in Dalata will be transferred to a new company that Pandox and Eiendomsspar will set up for the acquisition.

Earlier this year, Dalata was said to be exploring options to enhance shareholder value, including, but not limited to, a potential sale of the company. The company had appointed Rothschild & Co. as financial adviser regarding the strategic review.

At the time, reports said Dalata’s 30 owned hotels had been valued externally at €1.7 billion ($1.84 billion), including assets under construction. It also had 22 leased hotels at the time.

The company has made several hotel acquisitions this year, including the 229-key Radisson Blu Hotel, Dublin Airport, for €83 million, which will be rebranded under Dalata’s Clayton brand.

Dalata currently has a mixture of 61 owned and leased hotels under the Maldron and Clayton brands, most of which are located in Ireland and the U.K.