Hotel Property Investments (ASX:HPI) Target's Statement

Hotel Property Investments (ASX:HPI) has issued a Target's Statement in response to an off-market takeover offer made by Charter Hall Retail REIT and Hostplus. The HPI Board unanimously recommends rejecting the offer, citing undervaluation of HPI's portfolio, strong business position, and opportunistic timing of the offer. The offer does not provide a premium to HPI's NTA and reflects a material discount to comparable pub portfolios.

Executive Commentary on Target's Statement

The Board of Hotel Property Investments (HPI) has carefully considered the off-market takeover offer and unanimously recommends rejecting it. We believe that the offer undervalues our portfolio and does not reflect the true value of our business. The timing of the offer is opportunistic and does not provide a premium to our Net Tangible Assets. We are confident in the strength of our business and believe that the offer does not adequately recognize the potential of our pub portfolios. Therefore, we advise our securityholders to reject the offer based on these considerations.

Summary of Hotel Property Investments (HPI) Target's Statement

Hotel Property Investments (HPI) has released a comprehensive Target's Statement in response to the off-market takeover offer. The statement outlines the Board's unanimous recommendation to reject the offer, citing reasons such as undervaluation of HPI's portfolio, strong business position, and the opportunistic timing of the offer. It also provides key information for securityholders to consider the offer, including details on the conditions of the offer, potential outcomes, and the Bidder's intentions if the offer is accepted. The statement covers risks associated with accepting or rejecting the offer, the Bidder's intentions if it achieves a combined shareholding of 50.1% or more, and important legal protections concerning a delisting of HPI. Additionally, it includes information on tax considerations for HPI Securityholders and other relevant details. The Target's Statement aims to provide securityholders with the necessary information to make an informed assessment of the offer.