PPHE Hotel Group Limited (LSE:PPH) shares surged almost 26% on Thursday after a proposed £930 million takeover approach was made by Israel’s Fattal Hotel Group.
Shares in PPHE rose to 2,025p after the FTSE 250-listed group said it had received an indicative proposal priced at 2,200p cash from the Tel Aviv-based company.
The proposed offer price was a 37.5% premium to Tuesday’s closing price and about 47% above the stock’s level before the company launched a strategic review last November.
PPHE, which owns and operates hotels under brands including Park Plaza and art’otel, said its board had concluded that the proposal represented “fair value”.
An independent committee excluding Roni Hirsch, a director linked to major shareholder Euro Plaza Holdings, has been formed to oversee discussions.
Leonardo Hotels chain owner Fattal, which already owns about 4% of PPHE, said it hoped to announce a firm offer within four weeks, although both companies stressed there was no certainty that a bid would be made.
The proposed deal would value PPHE’s equity at about £930 million.
Fattal valued PPHE’s property portfolio across the UK, Croatia, the Netherlands and Germany at about £2.2 billion as at the end of 2025.
PPHE launched a formal sale process in November after its two largest shareholders, Eli Papouchado and Boris Ivesha, said they planned to meet a small number of financial investors to discuss a range of options.
These included injecting fresh capital into the business or partially cashing in their stakes. Papouchado and Ivesha together controlled about 44% of PPHE’s voting rights at the time.