Hotel Property asks investors to back Charter Hall bid amid hostile takeover fears (updated)

Hotel Property Investments

19/12/2024 23:21

(Updates throughout with details on deal, background)
       Dec 20 (Reuters) - Australia's Hotel Property  HPI.AX  on Friday asked shareholders to
back its A$760 million ($473.94 million) buyout, a day after the bidders took a majority stake
in the pub landlord, in a move to prevent a hostile takeover by its top shareholder. 
    Property giant Charter Hall  CHC.AX  and superannuation fund Hostplus raised their stake in
the Australian firm to 52.38% on Wednesday, and have now increased it to 53.48%, potentially
leading to a compulsory acquisition of Hotel Property. 
    Charter Hall is also the top shareholder in Hotel Property.
    A hostile takeover occurs when a bidder acquires a firm without the consent of the target's
board.
    Hotel Property said on Friday that the takeover offer remains uncompelling and substantially
undervalues its portfolio. 
    The firm's directors also consider changes to its governance and strategy as likely. 
    "The increase in ownership (by bidders) will also impact the free float, future liquidity
and broad investor appeal of an investment in Hotel Property Investments," it said. 
    HPI directors have repeatedly asked investors to reject the takeover offer, even after the
bid was increased to A$3.85 per share from A$3.785 apiece.
    Charter Hall did not immediately respond to a Reuters request for comment.
    
    
($1 = 1.6036 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru; Editing by Alan Barona)
 ((Roshan.Thomas@thomsonreuters.com))