PPHE shares surge as founders explore strategic options

Investing.com -- PPHE Hotel Group shares jumped 11% on Friday after reports that the company’s founders are considering strategic options, including potential growth capital or partial stake sales.

Eli Papouchado and Boris Ivesha are exploring these options amid a significant gap between the group’s £2.2 billion property portfolio (£1.4 billion net asset value) and its £628 million market capitalization, according to a Bloomberg article published Thursday and confirmed Friday morning.

The exploration of strategic alternatives comes after Israeli hotelier David Fattal and activist investor Keren Brosh acquired an 8% stake in the company earlier this year, adding pressure for potential changes to PPHE’s ownership structure and strategy.

Despite ongoing macroeconomic cost pressures in the UK and European markets, PPHE shares are expected to remain supported in the near term due to the company’s solid asset backing, moderate leverage, and the special situation created by these developments.

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