De Vere pressured to sell hotels

Leisure group De Vere was under renewed pressure after a major investor stepped up its campaign for the company to sell its British hotels.

GPG Holdings, which already owns 10% of shares, said it was making a £118 million offer for a further 25% of the Belfry golf complex owner.

The move would see two GPG directors pressing for a place on the De Vere board to try and force the sale of its hotels division, which includes Brighton’s famous Grand Hotel.

Shareholders were losing out because company accounts state the hotels are worth£551 million at a time when De Vere has a market value of £466 million, GPG said.

The board of De Vere described the offer as “unsolicited and unwelcome” and said it significantly undervalued its shares.