Charter Hall Retail REIT (ASX:CQR) made an off-market takeover with Australian superannuation fund Hostplus for Hotel Property Investments (ASX:HPI) for AU$3.65 per share, according to a Monday filing to the Australian bourse.
Charter Hall and Hostplus will contribute 50% each for the cash consideration and share 50% of the acquiring entity. The acquisition rationale is that HPI's portfolio of net lease retail assets complements Charter Hall's existing portfolio, the filing stated.
The offer is subject to HPI shareholder acceptance at a 50.1% minimum condition. Charter Hall recommends HPI shareholders accept the offer, according to a separate Monday filing.
HPI told the Australian bourse Monday that it recommends shareholders reject and take no action on the offer, calling it "opportunistic" and "not compelling" and that it materially undervalues the company.
Hotel Property Investments' shares rose 5.7% in recent trade.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.