Dalata

In summary, it's a merger of the two companies, and the shares will continue to be traded on the stock exchange.

We don't allow speculation about share prices, but this is unlikely to be a negative for Dalata, unless the analysts feel that they are paying too much for Morans.


It is usually used when there is a very large private company which wants a stock market quotation. They reverse takeover a small quoted company and use their quote It saves all the hassle and cost of applying for a listing. It is also used to circumvent regulations. For example, IIRC, after Irish Permanent Building Society went public, there was a 5 year period in which it could not be taken over. Irish Life wanted to buy it. So permanent tsb bought Irish Life instead rather than wait 5 years.

Dalata is a quoted company worth about €350m based on the last share price.

Moran Hotel Group is a private company which Dalata appears to have agreed to buy for €450m, so it's a larger company.

In a normal takeover, Dalata would pay cash for the shares in Moran Hotel Group.

In a reverse takeover, Moran Hotel Group takes over Dalata , but then merges with it.

The shares will continue to be quoted.

Brendan
 
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