Skip to Content
scroll

CQR’s takeover offer for Hotel Property Investments

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

The Latest Q&A

Question asked

CQR’s takeover offer for Hotel Property Investments

Charter Hall Retail and Hostplus have announced an off market all cash bid for the shares that they don't already own in HPI. Perhaps predictably the HPI board has said that they intend to reject the bid. Do you think this bid has a chance of succeeding - could the HPI board just be trying to squeeze a bit more cash out of CQR? Do you think the bid makes sense for CQR? And I've noticed that the list of widely held stocks in the afternoon reports often don't include CBA. Is there a reason for this - I'd have thought CBA would be well-qualified as "widely held"? Cheers, Carl

Answer

Hi Carl,

We doubt if CQR expected their initial $710 million takeover bid for pubs landlord Hotel Property Investments (HPI) would be successful, the question is what are they prepared to pay, everyone’s a seller at a price. As you say HPI rejected the bid telling investors that the deal represents a tiny premium on its share price and its actually lower than the value of its total assets. CQR is the largest shareholder of HPI already owning 17.78% showing they are clearly keen.

  • Our best guess is CQR will come back with a higher bid which will get the deal done, but it’s always hard to know with these things.

In terms of CBA, it should be in there, it has dropped out for some reason. We will fix this up.

chart
image description
Hotel Property Investments Ltd (HPI)
image description

Relevant suggested news and content from the site

Back to top