EasyHotel founder Sir Stelios Haji-Ioannou has urged fellow shareholders to reject a £139 million bid for the budget hotel chain.
The easyGroup magnate said the bid from a Canadian and Luxembourg consortium was “very low” and undervalued the firm’s shares.
Yesterday existing investor Ivanhoe Cambridge and Icamp announced the takeover bid saying it will help the hotel chain raise capital for growth.
The deal could see AIM-listed easyHotel taken private. The chain owns 12 properties and there are a further 26 franchises in the UK, Europe and Dubai. A further 17 are in development.
The takeover deal has been recommended by easyHotel’s board, putting them on a collision course with Haji-Ioannou, according to reports.
Haji-Ioannou urged “all other shareholders to take no action, ie: not accept the offer”. He founded easyHotel in 2004 and he and his family own 27% of the group’s shares.
Yesterday on news of the offer shares in easyHotel jumped 23.5p or 33% to 94p. Last year they hit a high of 128p. The bid was for 95p per share, 35% above last Friday’s closing price.
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