Ireland’s biggest hotel operator Dalata has agreed to a €1.4 billion takeover by Scandinavian property companies Pandox and Eiendomsspar AS, concluding months of negotiations that began with a rejected lower bid.
The deal, announced on Tuesday, sees Sweden-based Pandox acquire 91.5% of the entity taking over Dalata, while Norway’s Eiendomsspar will hold the remaining 8.5%. The agreement comes after Dalata rejected an initial €1.3 billion offer from the same buyers in early June.
Dalata operates 56 hotels under the four-star Maldron and Clayton brands, primarily across Ireland and Britain. The company’s portfolio of well-established properties in prime locations attracted the Scandinavian investors seeking to expand their footprint in key markets.
Under the approved deal, Dalata shareholders will receive €6.45 in cash per share, representing approximately a 12% premium to the closing price on June 2nd – the day before the Scandinavian companies first disclosed their interest in the Irish hotel group.
Chief Executive Dermot Crowley described the acquisition as a “very good fit,” explaining that it provides Pandox with a substantial portfolio in Britain and Ireland while giving Dalata enhanced access to capital and a larger platform for accelerated growth.
The transaction includes Pandox’s long-term operating partner, Scandic Hotels Group AB, becoming an operating partner for the existing Dalata portfolio. Crowley confirmed that Dalata will continue targeting new properties in the United Kingdom and western and southern Europe under the new ownership structure.
Pandox CEO Liia Nõu praised the acquisition of “well-established and highly profitable four-star hotels in strong locations” that will significantly increase the company’s presence in strategic markets.
The board-backed deal concludes Dalata’s strategic review launched in March to maximize shareholder returns.