The news: Charter Hall Retail REIT and industry superannuation group Hostplus have made a “final” offer for ASX-listed REIT Hotel Property Investments (HPI), after seeing their previous takeover bid rejected last month.
The numbers: Charter Hall Retail and Hostplus have offered to buy all of the shares it does not currently own in HPI for $3.85 per share — up from $3.65 per share — subject to a 50.1% minimum acceptance condition and other limited conditions.
The context: The suitors said the improved offer price is “best and final” and “will not be increased”.
Charter Hall Retail said the offer provides a “compelling price and valuation” for HPI shareholders. It noted that there is a “significant risk” that HPI’s market price will fall if the offer lapses given the company’s price has climbed 15% since the suitor, together with its parent company Charter Hall Group, first acquired a 14.8% stake in March.
The latest offer will remain open until 4 November, unless extended.
Last month, HPI rejected an initial takeover offer by Charter Hall Retail and Hostplus, claiming the move was “opportunistic, not compelling and materially undervalues HPI”.
HPI owns a portfolio of 58 Australian convenience hotel properties, predominantly located on the eastern seaboard and leased to the Queensland Venue Company and Australian Venue Company.