Hotel Property Investments (ASX:HPI) has issued a supplementary target's statement regarding a takeover bid from Charter Hall Retail REIT and Hostplus. The bid proposes $3.85 per security, adjusted to $3.785 due to a recent distribution. HPI's Board recommends rejection, calling the offer 'opportunistic and undervalued.'
Hotel Property Investments (ASX:HPI) has responded to a takeover offer from Charter Hall Retail REIT and Hostplus by recommending that securityholders reject the proposal. The Board considers the offer insufficient, failing to reflect HPI's unique market position and growth potential. HPI is the only 'pure play' pub REIT in the S&P/ASX 300 index and maintains a robust financial profile with a strong asset portfolio. Future growth is anticipated through strategic partnerships and favorable market conditions. The Revised Offer closes on 4 November 2024, with further discussions at HPI's Annual General Meeting on 13 November 2024.
The Revised Offer does not provide any premium to HPI's Net Tangible Assets (NTA). Furthermore, it does not adequately reflect the growth in distributions and undervalues the portfolio in comparison to market benchmarks. The timing of the offer is seen as opportunistic, amidst a strengthening outlook for REITs.