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PPHE Hotel Group said a proposed £920.9 million (€1.06 billion) takeover by Israel’s Fattal Hotel Group has collapsed after its largest shareholder opposed the deal, a development that sent PPHE shares tumbling nearly a fifth. The failed approach removes an immediate route to a sale while PPHE’s broader strategic review remains under way.
Shareholder opposition halts the bid
PPHE confirmed on Friday that Euro Plaza Holdings, which owns roughly a third of the company, objected to Fattal’s proposal. The group did not disclose the grounds for its resistance.
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Following the announcement, PPHE’s London-listed stock suffered the sharpest fall on the FTSE mid-cap index, down about 19.7% at 08:20 GMT, leaving the share price around 10% lower so far this year.
What Fattal proposed — and its withdrawal
In May, Fattal — a hotel operator with properties across Europe and the Middle East — had floated a possible cash offer of £22 a share (c. €25.40). It also holds an estimated 4% stake in PPHE.
On Friday Fattal said it no longer intends to submit a formal takeover bid, closing the chapter on that approach for now. PPHE runs properties under brands including Park Plaza and art’otel.
Strategic review continues amid fresh approaches
PPHE launched its strategic review in November and says it is seeking to conclude the process “as expeditiously as possible.” Management noted a preliminary proposal was received on 31 May, but gave no details about the bidder and said discussions remain at an early stage.
The review followed comments from two major investors — Eli Papouchado of Euro Plaza and Boris Ivesha — who indicated last year they might consider selling part of their stakes. Together the pair control about 44% of PPHE’s voting rights.
Requests for comment were not immediately answered. Ivesha did not respond to approaches, and Reuters could not quickly identify contact details for Euro Plaza or Papouchado.
Trading context and recent performance
PPHE reported an 8% rise in first-quarter revenue, attributing the gain to stronger London demand and higher average room rates. Still, the collapse of the Fattal approach underscores investor uncertainty as the company weighs strategic options.
