PPHE Hotel Group Ltd experienced a sharp decline in its share price on Friday after the London-listed hotel operator disclosed that a takeover approach from Fattal had collapsed when a key shareholder voiced opposition.
In a regulatory filing, PPHE said Euro Plaza Holdings - which holds roughly 33% of the company’s issued share capital - notified the independent offer committee that it "is opposed to the Fattal Proposal." Following that development, Fattal told the PPHE board it "would not be prepared to proceed" with an offer under those circumstances.
The independent committee reviewed the situation and "concluded that the Fattal Proposal is not capable of being delivered in its current form." Fattal had previously indicated a possible cash offer valuing the company at £22 per share, an approach first announced on May 27.
Despite the collapse of the bid, the PPHE board said it had "unanimously determined that the Fattal Proposal represents fair value." The committee also reported that it had "consulted widely with a significant proportion of PPHE shareholders, representing in aggregate approximately 83 per cent of the Company’s issued share capital," in the course of its assessment.
The formal sale process has its origins in November 2025. On Nov. 14, 2025, the Founder Shareholders - identified as Eli Papouchado and Ivesha and together owning approximately 44% of PPHE - confirmed their intention to hold discussions with investors about "a range of potential options," which triggered an offer period under the City Code on Takeovers and Mergers.
Subsequently, the PPHE board announced on Nov. 21, 2025 that it was carrying out a strategic review and had appointed Rothschild & Co as sole financial adviser. The company said it later received an additional expression of interest from a separate unnamed party on May 31, which it described as "at a very preliminary stage."
PPHE stated it "intends to conclude the process as expeditiously as possible" while warning that "there can be no certainty that any offer for the Company will be made." The immediate market reaction saw the stock give up more than 17% as investors digested the withdrawal of the Fattal approach and the lack of shareholder support from Euro Plaza Holdings.
Market context and process notes
The independent offer committee's assessment included outreach to shareholders holding a large portion of the company’s issued capital. The company has framed the May 31 expression of interest as preliminary, and it retains its stated objective of concluding the strategic review quickly, while acknowledging the possibility that no transaction will materialize.