(Reuters) -Scandinavian property companies Pandox AB and Eiendomsspar AS have agreed to buy Ireland’s largest hotel group Dalata for 1.4 billion euros ($1.64 billion), the companies said on Tuesday.
Dalata shareholders will get 6.45 euros in cash per share, representing a premium of about 12% to the closing price on June 2 – the day before the Scandinavian hotel investors first disclosed their interest in the Irish company.
Dalata had rejected an initial proposal in early June from Pandox and Eiendomsspar, valuing it at 1.3 billion euros, saying that the price undervalued the group.
The latest offer, which has the backing of the board, concludes the Dublin-based company’s strategic review that was launched in March to drive up shareholder returns.
Dalata operates 56 hotels under the Maldron Hotel and Clayton Hotel brands, with most located in Ireland and the United Kingdom. Recently, it has been expanding its portfolio into Continental Europe.
($1 = 0.8558 euros)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Mrigank Dhaniwala and Eileen Soreng)