PPHE Hotel Group Shares Plummet – Here’s Why

PPHE Hotel Group (LON: PPH) shares have crashed nearly 19% on Friday, June 19, 2026, after a highly anticipated takeover bid collapsed — leaving investors nursing painful losses and the company’s future direction deeply uncertain.

PPH stock fell from a previous close of 2,000p to as low as 1,620p intraday, settling around 1,622p — a decline of 378p, or approximately 18.9% — on heavy volume, as the market digested the double blow of a failed deal and a formal withdrawal by the would-be acquirer.

The Fattal Bid Collapses

The sell-off follows the breakdown of a takeover proposal from Israel’s Fattal Hotel Group, which had tabled an indicative all-cash offer of £22.00 per share — valuing PPHE at approximately £930 million — on 27 May 2026. The PPHE Board’s Independent Committee had unanimously deemed the proposal to represent fair value.

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However, the deal hit a critical wall when Euro Plaza Holdings, which controls roughly 33% of PPHE’s issued share capital, declared its opposition to the Fattal proposal. Crucially, Fattal subsequently confirmed it would not proceed in the face of that opposition — effectively killing the bid.

Fattal Issues Rule 2.8 Statement

Fattal has now issued a formal Rule 2.8 statement confirming it does not intend to make an offer, locking it out of returning with a new approach for at least six months barring specific exceptions under the City Code on Takeovers and Mergers.

Strategic Review Drags On

The setback is a significant one. PPHE’s strategic review has been running since November 2025 — over seven months — after founder shareholders Eli Papouchado and Boris Ivesha, who collectively hold approximately 44% of voting rights, triggered an offer period under the City Code.

A separate, unnamed interested party emerged on 31 May 2026, but the Board cautioned that interest remains at “a very preliminary stage.” The Board said it intends to conclude the process “as expeditiously as possible,” but stressed there can be no certainty any offer will materialise.

For investors who piled in following the original Fattal approach, Friday’s rout represents a brutal reversal.