Investment tycoon Jack Petchey has made a £38.2m bid for hotel group Hanover International after building up a 49.15% stake in the company.
Hanover shareholders representing a further 3.8% of its share capital also have signed non-binding letters indicating that they intend to accept Petchey’s offer of 125p a share, taking his stake in the company to more than 52%.
Hanover said it had noted the offer from Petchey and would be considering it together with advisors.
The group added that it would be in contact with shareholders as soon as practicle, but until that time advised them to take no action in relation to the offer.
Petchey, through his investment vehicle Trefick, has made millions by investing in undervalued companies. Over the past year, the entrepreneur has been building up stakes in a number of hotel companies, including Jarvis Hotels and Queens Moat Houses (QMH).
Hanover has been experiencing trading difficulties for some time, and in the 12 months to 31 December 2002 it saw profits dive by more than 60%.
In March 2002, Petchey tried to acquire a 26% stake in QMH but had his 14p-a-share offer rejected as “wholly inadequate and opportunistic.”