Askume, Sept 9 – Australian pub owner Hotel Property Investments (HPI.AX) hit a 19-month high on Monday, its best performance in a year and a half, after its largest shareholder made a takeover bid of A$716.5 million (A$478.4 million).
However, Hotel Property Investments, which owns 58 pub and hotel properties, rejected a takeover bid of A$3.65 per share from Charter Hall Retail REIT (CQR.AX), which owns about 15 per cent of the company , saying it undervalued the company at that price.
Shares in Hotel Property Investments rose 6.6 per cent to A$3.71, above the offer price, a sign that shareholders were expecting a better offer.
Morningstar analyst Adrian Atkins agreed, saying he supported rejecting the hotel property’s takeover bid and saw no reason to sell immediately.
“HPI remains in a strong financial position, with earnings being defensive due to long-term leases and relatively high-quality pubs.”
Charter Hall’s retailer and bid partner, pension fund Hostplus, said the offer was well-funded and offered an attractive premium to Hotel Property Investments’ historic trading levels.
Its parent company is Charter Hall Group(CHC.AX), Australia’s largest bar owner and operator of restaurants such as Young & Jackson in Melbourne. (USD 1 = AUD 1.4977)
