EasyHotel is set to be taken over despite opposition from its billionaire founder Sir Stelios Haji-Ioannou.
Earlier this month Sir Haji-Ioannou 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.
More: Bid for easyHotel recommended to shareholders
Sir Stelios opposes £139m easyHotel takeover bid
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But on Wednesday, the consortium said they now either have or have received acceptances for shares carrying more than 50% of company’s voting rights.
The offer values easyHotel’s shares at 95p.
The board has welcomed the news but dismissed by Sir Stelios who said the price gave “no value” to the business beyond its physical assets.
The Financial Times reports that Sir Stelios is trying to grow his stake from 27.5% to just under 30%, which is the limit after which an investor has to launch a formal takeover bid, before the September 17 deadline for final acceptances of the offer.
The bidding consortium is made up of Luxembourg-based ICAMAP and Ivanhoé Cambridge of Canada.
Sir Stelios founded the the hotel chain in 2004 and the business opened its first property in South Kensington in 2005.
The company operates 38 hotels under owned or franchised models, which, like the easyJet airline, target the budget end of the market.
EasyHotel reported profit before tax of £872,162 with total revenue at £11.3m.
Sir Stelios said: “I am delighted they want to put investment behind the company, the question is at what price.” He urged other shareholders to reject the offer at 95p.
More: Bid for easyHotel recommended to shareholders
Sir Stelios opposes £139m easyHotel takeover bid
EasyHotel aims for more OTA and direct business [Jan 19]
