Hotel Property Investments take a firm stance

Hotel Property Investments (ASX:HPI) has issued a supplementary target's statement in response to an off-market takeover bid by Charter Hall Retail REIT and Hostplus. The bid is for all securities in HPI, with a revised offer price of $3.85 per security, adjusted post-distribution. The HPI Board unanimously advises securityholders to reject the bid, stating it undervalues the company's portfolio.

Analysis of HPI's strategic response

Hotel Property Investments (ASX:HPI) has responded decisively to a takeover bid from Charter Hall Retail REIT and Hostplus, advising securityholders to reject the offer. The Board views the bid as undervaluing HPI's high-quality pub portfolio and growth prospects. The offer, set at $3.85 per security and adjusted post-distribution, does not provide a premium to HPI's Net Tangible Asset value. The Board highlights the company's strategic position, financial health, and strong partnerships as reasons to reject the offer. The bid is seen as opportunistic amidst improving market conditions, and HPI emphasizes its long-term value potential despite possible short-term volatility. Securityholders are encouraged to consult financial advisers if uncertain about the offer.

Executive insights on the takeover bid

The HPI Board believes that the offer does not provide a fair value for HPI's unique pub portfolio, which is positioned for growth due to its strategic asset value and strong relations with tenants like the Australian Venue Co.