Consortium lower offer price for Gresham Group

The consortium which is in discussions to buy the Gresham Hotel group has lowered its offer price, according to a statement made to the Irish Stock Exchange.

A revised offer of €1.35 was received from the would be investors, down from the initial €1.45 offer made on February 6.

The consortium advised Gresham that it has undertaken a full due diligence process and that the outcome was satisfactory.

However, it also confirmed that the property valuation exercise conducted as part of the due diligence process confirmed that the value of the hotels in the portfolio exceeded the aggregate carrying value of the properties in the most recent audited financial statement.

Its revised approach was because the level of uplift in the property valuation exercise did not meet the expectations they held at the outset, the consortium said.

It also indicated that the revised approach was conditional on 80% Gresham shareholder acceptance.