Shares in PPHE Hotel Group Limited (LSE:PPH) surged 10% to 1,654p after its two largest shareholders, Eli Papouchado and Boris Ivesha, said they plan to meet a small number of financial investors to discuss a range of options, including injecting fresh capital into the business or partially cashing in their stakes.
Papouchado and Ivesha, who together control about 44% of PPHE’s voting rights, said the meetings are exploratory and cover “a range of potential options, from contributing growth capital to PPHE, to a potential partial monetisation of their stakes”.
They stressed they are not in talks with any party about a sale of their combined holding and have not received any offer. “There can be no certainty that any such offer will be made,” they said.
The statement was issued “without the knowledge of PPHE”, an unusual detail that signals the discussions are being pursued independently of the company’s board.
Because of the announcement, PPHE is now in an “offer period” under UK takeover rules, a status that triggers heightened disclosure requirements for shareholders and market participants under Rule 8 of the Takeover Code.
The shareholders said a further update will be provided “when appropriate”.