PPHE Hotel Group Limited (LSE:PPH) shares fell 15% to 1,698p after the collapse of a proposed takeover bid from Fattal Hotel Group, which withdrew its £22.00 per share offer following opposition from the company's largest shareholder.
Euro Plaza Holdings, which owns approximately 33% of PPHE, informed the independent committee overseeing the strategic review that it opposed the Fattal proposal.
Fattal subsequently said it would not proceed with the offer if Euro Plaza remained opposed to the transaction.
The Independent Committee concluded that the Fattal proposal, which had been valued as fair by the board, was not capable of being delivered in its current form.
The strategic review, which began in November 2025 after founder shareholders signalled they were considering options ranging from capital contributions to a partial stake sale, has now stalled.
The board appointed an independent committee in May after receiving the Fattal proposal, excluding Roni Hirsch, the representative director of Euro Plaza Holdings.
The committee consulted widely with shareholders representing approximately 83% of the company's issued share capital.
Founder shareholders Eli Papouchado and Boris Ivesha collectively own around 44% of voting rights, while Euro Plaza Holdings, controlled by Papouchado, holds the 33% stake.
The deadlock appears to reflect a difference of opinion between the founder shareholders about the appropriate price for their stakes and the strategic direction of the business.
A second indicative proposal from another interested party was received on 31 May 2026, but the statement described this interest as at a very preliminary stage and currently being assessed.
The board said the strategic review process had been thorough and conducted over more than seven months, and intended to conclude it as expeditiously as possible.
The collapse of the Fattal offer leaves PPHE without a binding proposal on the table and uncertain about its future.
There can be no certainty that any offer for the company will be made, the board said.
