PPHE Hotel Group, which owns the Park Plaza brand and has a partnership with Radisson Hotel Group, stated it will engage in discussions with its shareholders regarding the acquisition proposal.
PPHE Hotel Group has received a takeover offer from its shareholder, Fattal Hotel Group, valuing the company at £920.9 million (approximately $1.24 billion). The company considers the offer to represent fair value. Following the announcement, PPHE's share price reached a three-month high.
The stock is listed on the London Stock Exchange. During early trading, the share price touched £20.50. By midday, it was up 24% at £19.92. Year-to-date, the stock has gained 11%.
The Netherlands-based hotel and resort operator announced after market close on Wednesday that it had received the acquisition interest from the Israeli company. The proposed offer price is £22 per share, representing a 36% premium to Wednesday's closing price of £16.12.
PPHE Hotel Group operates the Park Plaza brand and maintains a partnership with Radisson Hotel Group. The company stated on Wednesday that it will communicate with its major shareholders regarding this proposal.
Fattal Hotel Group subsequently confirmed it formally submitted the proposal on Tuesday. The group currently operates 316 hotels across 21 countries. It stated that this indicative offer has a validity period, and the parties intend to engage in substantive discussions over the next four weeks to work towards a formal agreement.
According to data from London Stock Exchange Group, Fattal Hotel Group currently holds a 3.97% stake in PPHE Hotel Group.
PPHE Hotel Group had previously announced on November 21 of last year that it was initiating a comprehensive strategic review to enhance shareholder value, which included exploring the potential sale of the company, either in whole or in parts.
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