Hotel group Dalata rejects €1.3bn takeover bid as 'materially undervalued'

Firms operates Maldron and Clayton hotels across Ireland, the UK and Europe

The consortium has until July 15 to make a formal offer for Dalata or walk away

Ireland's largest hotel group Dalata has rejected a €1.3bn takeover bid from property owners Pandox and Eiendomsspar as "materially undervalued". 

A consortium consisting of property owners Pandox and Eiendomsspar proposed the buyout. The proposal comprised a cash offer of €6.05 per ordinary share of Dalata, representing a premium of about 5% to the firm's closing price on Monday.

"The board of Dalata has considered the Pandox possible offer, together with its advisers ... and concluded that the offer materially undervalues the group and its prospects and has therefore unanimously rejected the offer," a Dalata statement said.

Dalata said it continues to engage in constructive discussions with a number of parties who are participating in a formal sales process (FSP) and who have submitted initial non-binding proposals. "Pandox is not a participant in the FSP, having declined to enter the process on the terms of the process set out in the group’s announcement dated 6 March 2025," Dalata said.

"The board remains committed to its ongoing strategic Review and FSP and a further announcement will be made in due course as appropriate."

Eiendomsspar currently holds about 8.8% of Dalata's issued ordinary shares, making it the second largest shareholder in the hotel group, which operates the Clayton and Maldron brands.

Its offer comes after Dalata, launched a strategic review in March to explore options for enhancing shareholder value, including a potential sale.

Dalata operates 55 hotels under the Maldron Hotel and Clayton Hotel brands, with most located in Ireland and the United Kingdom.

The consortium has until July 15 to make a formal offer for Dalata or walk away, under British takeover rules.

Additional reporting by Reuters