HPI shares lift as it tells shareholders to accept Charter Hall, Hostplus buyout
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The news: Shares in Hotel Property Investments (HPI) edged up on the ASX after its directors revised their recommendation to shareholders to accept the proposed takeover by Charter Hall Retail REIT and Hostplus, after the suitors gained a majority holding.
The numbers: HPI shares were up 0.13% to $3.78 at 2:12pm AEDT as the wider A-REIT sector fell 0.6%.
Having previously urged shareholders to reject Charter Hall and Hostplus' $3.85-per-share takeover offer, HPI's directors have now recommended they accept the bid.
Charter Hall and Hostplus have built their aggregate interest in HPI from less than 20% in September to 52% as of 18 December.
The context: HPI said that as the bidders now hold more than 50% of the company's securities, they will be able to control the composition of the board and influence its strategy.
HPI noted that the increase in ownership will also impact the free float, future liquidity and investor appeal of an investment in the company.
The source: ASX announcement
