JDH Acquisitions, a consortium holding over 40 per cent of Jurys Doyle , said today it had agreed a €1.25 billion takeover bid for the hotel group.
JDH, which includes five Jurys board members and the daughters of the company's late founder, PV Doyle, said it would pay €18.9 for each Jurys Doyle share, a premium of 51.2 per cent over Jurys' closing share price on May 5th, the day before takeover rumours emerged.
If the bid is successful, the group may seek to delist the company. Shares in Jurys, which has been the subject of intense takeover speculation, were up 1.1 per cent at €18.9 in early Dublin trade.
"The (board) believes that the price to be offered by JDH Acquisitions represents an attractive opportunity for Jurys Doyle shareholders to realise their investment for cash by accepting the cash offer," Jurys Chairman Richard Hooper said in a statement.
The consortium, which is being advised by Goldman Sachs, said it owned 41.9 per cent of Jurys Doyle shares and had received irrevocable undertakings that would take its ownership to 45.2 per cent.
The offer requires acceptances from holders with more than 50 percent of the company, something that should not be a problem, according to analysts. "This is the first formal offer we've seen on this company.
Nobody else has got to this stage. It's a pretty good offer," said Brid White, an analyst at Merrion Stockbrokers.
She said that while anything was possible, she believed it unlikely that another formal offer would emerge at this stage.
Several other potential bidders have been linked with Jurys, including property developer Sean Dunne, who has accumulated a 28 per cent stake in the company and has said he is considering his options over a potential bid.
No details of timing on the deal were included in the JDH statement today. The full offer document must be sent to shareholders within 28 days.
Another consortium, Precinct Investments, walked away in August after several of its approaches were rebuffed and Jurys' share price rose beyond what it was prepared to pay.
Jurys, which operates 36 hotels in Ireland, Britain and the United States and employs some 4,000 people, said JDH may seek to delist the company if its offer is declared unconditional.
Instead of cash, shareholders will also be able to opt for redeemable preference shares issued by JDH, with a coupon of 3 per cent per annum but no voting rights.