A Scandinavian consortium circling Dalata Hotel Group has signalled an interest in potentially making an improved offer for the business, after its €1.3 billion bid was rejected earlier this month.
Oslo-based investment firm Eiendomsspar and Swedish hotel company Pandox, in which it owns an almost 25 per cent stake, said on Friday that they have bought 1.69 million shares in Dalata at €6.30 – marking a premium to the €6.05-a-share non-binding offer it had made for the company.
“Consequently, any firm intention to make an offer for Dalata by the consortium in accordance with Rule 2.7 of the Irish Takeover Rules, if made, will be at a price of not less than €6.30 per share,” the Nordic group said.
“There can be no certainty that any offer will be made. A further announcement will be made as appropriate. Any offer, if made, is likely to be solely in cash, although the consortium reserves the right to vary the form of consideration and/or introduce other forms of consideration.”
Eiendomsspar already owned an 8.8 per cent stake in Dalata before it made the bid approach. This latest share buying brings its stake in the Irish hotel group to 9.6 per cent.
[ Dalata rejects surprise €1.3bn bid from Scandinavian consortiumOpens in new window ]
The property firm, which has a history of large investments in hotels, first emerged with a disclosable stake above 3 per cent in Dalata at the end of October. The company added to its stake the following month.
But its chief executive, Sigurd Stray, sought to contain speculation at the time that it could amount to a strategic stake-build, telling The Irish Times he saw it as a “financial investment” that would “hopefully provide a fair return over time”.
The early-June bid came as a surprise as the Pandox-Eiendomsspar consortium had not been involved in a formal sale process, managed by investment bank Rothschild, that has been going on in recent months.
Dalata, which is led by chief executive Dermot Crowley, rejected that offer, saying it “materially undervalues the group and its prospects”.
[ Bidding war for Dalata Hotel Group hots upOpens in new window ]
The board of Dalata, which floated on the stock market in 2014, hired investment bank Rothschild to carry out a strategic review of the business in March, following a sustained period of underperformance by the stock.
Shares in Dalata jumped as much as 5.3 per cent to €6.53 on Friday afternoon, after the Pandox-Eiendomsspar consortium revealed its latest share purchase. The spike suggests that investors are holding out for a bid above the new floor that the consortium has set for a potential second tilt at the company.
