The board of EasyHotel are set to clash with Sir Stelios Haji-Ioannou the company’s founder, after investors were recommended to accept an offer for the company.
Sir Stelios who owns 27% of the hotel chain said he will reject the 95p a share offer and has urged other investors to do the same.
Luxembourg investment group ICAMAP, who already holds a 38.7% stake in easyHotel made the offer along with Ivanhoe Cambridge, a Canadian-based pension fund.
EasyHotel has 38 hotels across 10 countries, the deal values the group at £138.7m and the move will allow the hotel chain to expand into more locations.
EasyHotel board has recommended shareholders accept the deal and warned that Sir Stelios could still cause problems over the deal.
He said, “I find the offer from ICAMAP to be very low and I urge all other shareholders to take no action (ie not accept the ICAMAP offer) until the true value and future potential of easyHotel can be evaluated.
“It should be noted ICAMAP themselves paid 110p (per share) only 18 months ago and the stock has been as high as 128p just 15 months ago.”
Chairman Jonathan Lane said the offer is “fair and reasonable.”
“If accepted, the offer should enable the easyHotel group to accelerate its expansion into major European cities where it sees significant opportunity, underpinning the long-term growth and prosperity of the easyHotel brand.”
Harm Meijer, founding partner and managing director of ICAMAP said, “We continue to believe in the long-term strategy of the business. However, we also believe that the company needs a change in its shareholder base in order for easyHotel to become a true leading pan-European budget hotel player.”
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