Shares in PPHE Hotel Group (LON:PPH) dropped 10% after the company revealed bidder Fattal had withdrawn its indicative offer. Fattal had proposed an all-cash offer at £22 per share, a 36% premium, which the PPHE board considered ‘fair value’.
Farewell Fattal
In November 2025, PPHE announced it was beginning a strategic review ‘to maximise value for all shareholders’. The move was prompted by the group’s two biggest investors looking to monetise their combined 44% stake.
Following the Fattal offer last month, an independent committee consulted with shareholders representing 83% of PPHE’s capital. Euro Plaza Holdings, which owns 33% of the share capital, rejected the offer, despite the sizeable premium.
In response, Fattal said it wan’t prepared to go ahead without the support of Euro Plaza and would let its offer lapse. PPHE has since received another indicative proposal from an unrelated party but talks are at a ‘very preliminary’ stage.
This is obviously a blow for minority shareholders, who thought they had an exit at £22 after months of uncertainty. While there is another proposal on the table, there is no guarantee Euro Plaza will be any more amenable.
Our takeaway from this sorry saga is to beware of companies where there are significant shareholders with their own agenda. When investors controlling 44% of the stock are calling the shots, retail shareholders are bottom of the pile.
Read the press release here:
https://www.pphe.com/investors
