Australian pub landlord Hotel Property jumps after holding out for bigger buyout offer

Hotel Property Investments

09/09/2024 06:35

By Sneha  Kumar
       Sept 9 (Reuters) - Australian pub landlord Hotel
Property Investments  HPI.AX  jumped to a 19-month high on
Monday, set for its best session in one-and-a-half years, after
its top shareholder's buyout offer valuing the company at
A$716.5 million ($478.4 million).
    However, Hotel Property Investments, which owns 58 pub and
hotel properties, rejected the A$3.65-per-share offer from
Charter Hall Retail REIT  CQR.AX , which has a near 15% stake in
the firm, saying it undervalued the company.
    Shares of Hotel Property Investments jumped as much as 6.6%
to A$3.71, above the offer price and indicating shareholders
were expecting a better offer.
    Morningstar analyst Adrian Atkins concurred, saying it
backed Hotel Property's rejection of the offer and that there
was no reason for an immediate sale.
    "HPI is in sound financial health, revenue is defensive
thanks to long leases and relatively good quality pubs."
    Charter Hall Retail and bidding partner, superannuation fund
Hostplus, said the offer is fully funded and provided an
attractive premium to Hotel Property Investments's historical
trading levels.
    Its parent is Charter Hall Group  CHC.AX , Australia's
largest pub owner and the operator of hotels like Young &
Jackson in Melbourne.
 
 ($1 = 1.4977 Australian dollars)

 (Reporting by Sneha Kumar; Editing by Savio D'Souza)
 ((Sneha.Kumar@thomsonreuters.com;))