Hotel Property Investments takeover bid response

Hotel Property Investments (ASX:HPI) has released a second supplementary target's statement in response to a takeover bid from Charter Hall Retail REIT and Hostplus. The HPI Board recommends rejecting the bid, labeling it as opportunistic and undervaluing HPI's assets.

Hotel Property Investments takeover bid summary

Hotel Property Investments (ASX:HPI) has received an off-market takeover bid from Charter Hall Retail REIT and Hostplus for all HPI securities. The offer requires 35% acceptance by December 2024, with the bidders currently holding 26.94%. The HPI Board advises securityholders to reject the offer, citing undervaluation of HPI's assets and growth potential. HPI is committed to secure income and strategic growth, highlighting its premium pub assets and market position. The company continues to provide resources and communication to support informed decision-making by securityholders.

Hotel Property Investments Board commentary

The HPI Board unanimously recommends that securityholders reject the bid, describing it as opportunistic, unsolicited, and conditional. The bid is characterized as materially undervaluing HPI's portfolio and failing to compensate securityholders adequately for the company’s unique pub assets and business outlook.