HPI urge shareholders to resist takeover as Charter Hall hikes interest
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The news: The directors of Hotel Property Investments (HPI) have continued to urge the company's shareholders to reject a takeover offer by Charter Hall Retail REIT and Hostplus, announced last month, as the suitors hiked their interest in the ASX-listed REIT.
The numbers: Charter Hall and Hostplus told HPI on Thursday that the $3.85-per-share takeover offer will be declared unconditional if the bidders hold or have received the acceptances for at least 35% of HPI shares by 9 December.
The offer, which has been open for acceptance by HPI shareholders since 25 September, has seen Charter Hall and Hostplus build their aggregate interest by 8.38%, from 18.56% to 26.94%.
The context: HPI's directors unanimously recommend that shareholders reject the "opportunistic, unsolicited and conditional, best and final takeover offer" by Charter Hall and Hostplus.
They told shareholders that the offer is "not compelling, materially undervalues HPI's portfolio and does not compensate HPI securityholders for the value of HPI's unique pub portfolio, or the strength and outlook for the business."
At HPI's annual general meeting last week, the company's CEO and managing director John White provided a strategy update reconfirming HPI's vision "to be Australia's premium ASX-listed owner of pub assets".
The HPI board said it believes its existing pub portfolio and strategy offers "significantly greater value" to its shareholders that accepting the takeover offer.
The source: ASX announcement
