Israeli hotel firm Fattal Group has submitted a non-binding proposal to acquire 100% of PPHE Hotel Group for £22 ($29.53) per share.
The price per share will be attributable to the shares in PPHE that Fattal does not already own.
PPHE is based in Amsterdam and listed on the London Stock Exchange, which states Fattal currently owns 3.97% of PPHE.
Fattal’s offer values PPHE at £930 million, with its bid for the approximate 96% of the firm thus having a value of approximately £921 million.
The news comes approximately six months after PPHE’s founder and president and co-CEO said they were investigating potential investment options, including strategies of “contributing growth capital to PPHE, to a potential partial monetization of their stakes in PPHE.”
In a news release issued Thursday on the London Stock Exchange, Tel Aviv-based Fattal said “it is willing to maintain the proposal for a limited period to allow for a constructive engagement with [the] PPHE board and its advisors, with a view towards announcing a firm offer within the next four weeks.”
On Wednesday, PPHE confirmed via a stock filing that its executives had “evaluated [Fattal’s] proposal and determined that (it) represents fair value. … The board intends to engage with … major shareholders regarding the proposal in order to assess its deliverability. There can be no certainty that any firm offer will be made or as to the terms of any offer. A further announcement will be made as appropriate.”
PPHE's current hotel portfolio comprises 51 hotels and approximately 9,600 rooms in eight European countries, including eight Croatian campsites. The company values its portfolio at approximately £2.2 billion.
PPHE's stock price now stands at £19.82 per share, up 23% from the close of trading Wednesday, which gives the firm a market capitalization of more than £830 million.
Fattal, which has 315 hotels in 21 countries, has a market capitalization of approximately 13 billion New Israeli shekels ($4.6 billion).
Both PPHE and Fattal referred to their stock filings when asked by CoStar News Hotels for further comment on the proposal.