Business Irish

Thursday 28 August 2014

Maldron owners' US roadshow ahead of Dublin listing

John Mulligan

Published 01/03/2014 | 02:30

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Pat McCann, head of Dalata
Pat McCann, head of Dalata

PAT McCann, the head of Ireland's biggest hotel group, Dalata, will travel to the United States next week to drum up interest in the company's planned stock market flotation that aims to raise between €150m and €200m.

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Speaking to the Irish Independent, Mr McCann said that Dalata is holding investor roadshows in New York and Boston next week, while the UK and a day in mainland Europe will follow the week after as Dalata gears up for its initial public offering at the end of March.

The former boss of Jurys Doyle, Mr McCann said that there has been a high level of interest in Ireland in Dalata's planned stock market flotation, while investors in the US and UK are also keen to analyse the group's plans. Davy Stockbrokers is handling the roadshows for Dalata.

"It's about getting investors now and to be honest, we've got a lot of interest," he said.

Dalata confirmed yesterday that it aims to make its stock market debut within weeks.

It intends to list its shares on London's Alternative Investment Market (AIM) and Dublin's Enterprise Securities Market (ESM).

Mr McCann wouldn't be drawn on what value the flotation would place on Dalata, or if it might seek to raise even more funds from the listing if investor appetite is sufficiently strong.

Dalata operates 13 Maldron hotels in Ireland and the UK, while it also operates an additional 27 hotels on a management contract basis.

It controls over 6,100 hotel bedrooms.

It intends to use the funds it will raise to buy between 16 and 25 hotels and to reduce some of its €4.1m net debt.

The stock market listing will come as NAMA prepares to sell a number of hotels it controls in Ireland in coming months.

Dalata will place shares with institutional investors, as well as clients of Davy (80 of them originally invested €20.5m in Dalata when it was founded in 2007 and own about two-thirds of the group) and other existing shareholders.

Among the group's other shareholders is investment firm TVC, headed by Shane Reihill. It invested in Dalata when it was founded by Mr McCann, who personally invested €1m in the business.

Dalata also borrowed about €15m. It used the funding to pay €46m for 10 hotels from developer Paddy Kelly.

The subsequent difficulties in the hotel sector as a result of the downturn saw TVC write off virtually its entire €10m investment in Dalata.

Irish Independent

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