PPHE Hotel Group (PPH) shares slumped on Friday after takeover talks with Israel’s Fattal Hotels collapsed, leaving the FTSE 250-listed operator in a renewed phase of uncertainty around its ongoing strategic review.
PPHE Hotel Group dropped 15% to 1,684p, making it the worst performer in the FTSE 250, as investors reacted to Fattal stepping away from a potential deal that had previously valued the business at around £920.9 million based on an offer of £22 per share.
Fattal Hotels, part of the group behind Leonardo and NYX branded properties and already holding just under 4% of PPHE, confirmed it would not proceed with a formal offer after opposition from a major shareholder blocked progress.
That shareholder, Euro Plaza Holdings, controls roughly 33% of voting rights and made clear it was not supportive of the proposed transaction, a stance that effectively prevented the bid from moving forward in its current form.
With that obstacle in place, Fattal told PPHE’s board that it would not pursue an offer under those conditions and following further discussions, both sides concluded no agreement could be reached, bringing the process to a close.
Despite the breakdown, PPHE said it has recently received an indicative proposal from another interested party, though it stressed the approach is at a very early stage and remains under assessment with no certainty it will develop further.
The company has been running a strategic review since November, a process that has included consideration of a full sale alongside other options, particularly after two large shareholders previously signalled interest in reviewing their positions.
PPHE noted that the review has now been underway for more than seven months and the board intends to bring it to a conclusion as quickly as possible while still evaluating any credible expressions of interest.
PPHE’s portfolio spans roughly 50 hotels across eight countries including the UK, Netherlands, Croatia and Germany, with nearly 9,400 rooms and a real estate base valued at about £2.2 billion, leaving the group still an attractive asset despite the failed approach.