PPHE Hotel Group Limited (LSE:PPH) told investors that Fattal Hotel Group's 2,200p-a-share cash offer can no longer go ahead in its current form, after one of the company's biggest shareholders dug in against the deal.
The setback comes amid a strategic review and formal sale process that the hospitality real estate group's independent committee has been running since November 2025, with a mandate to look at every option for getting shareholders the best possible value.
That review was sparked by founder shareholders Eli Papouchado and Boris Ivesha, who, between them, hold around 44% of the voting rights, signalling they were open to a range of paths forward, from bringing in fresh growth capital to selling down part of their stakes.
Fattal's interest became public on 27 May, when PPHE confirmed it had received an indicative cash proposal. The board and its Rule 3 adviser looked at the numbers and agreed unanimously that it represented fair value.
From there, an independent committee took over to weigh up the offer, with Roni Hirsch, a representative director of Euro Plaza Holdings, stepping aside given the obvious conflict. The committee went on to consult shareholders covering roughly 83% of PPHE's shares to sound out their reaction to the proposal. However, Euro Plaza Holdings, which owns around a third of the company, made clear it wasn't on board.
That objection turned out to be decisive. Fattal subsequently told the board it wouldn't push ahead with a deal Euro Plaza opposed, leaving the independent committee to conclude that the proposal, as it stands, simply can't be delivered.
It's not the end of the story, though. PPHE, which owns and operates hotels under brands including Park Plaza and art’otel, also disclosed that a separate party came forward with an indicative proposal of its own on 31 May. That approach is still at an early stage and is being worked through.
Looking back over more than seven months of review, the board says it's determined to wrap up the process as quickly as it reasonably can.
