LONDON (ShareCast) - (Sharecast News) - Shares in PPHE Hotel Group were plunging on Tuesday morning, after the hospitality group revealed that Euro Plaza Holdings, Walford Investments Holdings and Aroundtown Real Estate were proposing to sell up to 9,300,000 shares in the company, pro rata to their existing shareholdings.
The London-listed firm said the disposal would be through a placing of ordinary shares in the company to institutional investors, by means of an accelerated bookbuild offering at a price of not less than 1,600p per placing share.

It confirmed the placing shares represented around 22% of the issued share capital of the company, excluding treasury shares.

"The company has been notified that the placing is being undertaken in order to satisfy market demand, to broaden the institutional investor base of the company and that the sellers have been advised that a sale of the entire amount of the placing shares is expected to achieve the free float required for the company to qualify for inclusion in the FTSE UK series of indices," the PPHE Hotel Group board said in its statement.

The placing began immediately following the announcement on Tuesday morning, with the timing for the closing of the bookbuild process to be at the discretion of the joint bookrunners.

"The company is not a party to the placing and will not receive any proceeds from the placing," PPHE added.

As at 0901 GMT, shares in PPHE Hotel Group were down 7.12% at 1,653.2p.

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