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HPI urges shareholders to resist takeover as Charter Hall hikes interest rate – Capital Brief

HPI urges shareholders to resist takeover as Charter Hall hikes interest rate – Capital Brief

News: Directors of Hotel Property Investments (HPI) continue to urge the company’s shareholders to reject a takeover bid from Charter Hall Retail REIT and Hostplus. announced last monthas buyers increased their interest in the ASX-listed REIT.

Numbers: Charter Hall and Hostplus told HPI on Thursday that the $3.85-a-share takeover bid would be made unconditional if bidders held or received acceptances of at least 35% of HPI’s shares by Dec. 9.

The offer, which was open for acceptance by HPI shareholders from September 25, saw Charter Hall and Hostplus increase their combined stake by 8.38%, from 18.56% to 26.94%.

Context: HPI directors unanimously recommend that shareholders reject the “opportunistic, unsolicited and conditional, best and final takeover offer” from Charter Hall and Hostplus.

They told shareholders the offer “is not compelling, materially understates the value of HPI’s portfolio and does not compensate HPI security holders for the value of HPI’s unique portfolio of pubs or the strength and prospects of the business.”

At HPI’s annual general meeting last week, the company’s CEO and managing director John White presented an updated strategy reaffirming HPI’s vision to “become the premium owner of Australian ASX-listed pub assets.”

HPI’s board said it believes the existing pub portfolio and strategy offers “significantly greater value” for shareholders than accepting a takeover bid.