Property group Charter Hall is going all out with its strategy of expanding into the hotel sector by declaring its $756 million joint takeover bid for Hotel Property Investments (HPI) free of all conditions.
Charter Hall Retail REIT said although the conditions of the offer - launched in September - of $3.85 per stapled security had not been fulfilled, the bid was now free of conditions.
One condition had been that Charter Hall and joint bidder, superannuation fund Hostplus, achieve a minimum acceptance level of 50.1% compared with the 14.7% owned at the time of the offer and the 34.85% stake held now.
The offer has been rejected by the Hotel Property Investments board, saying it was opportunistic and materially undervalued the target based on net tangible assets and comparable transactions.
Charter Hall Retail, which owns a portfolio of retail properties such as neighbourhood and regional shopping centres and service stations, launched the bid as part of its strategy to expand its portfolio with high-quality, income-generating hotel assets.
HPI owns a $1.3 billion portfolio of 59 pubs and other properties which are primarily leased to the Australia's second-largest hospitality group, Australian Venue Co.
Hotel Property Investments (ASX:HPI) securities closed unchanged at $3.78 after trading between this level and $3.79, giving it a market capitalisation of $743 million.
Charter Hall Retail REIT (ASX: CQR) securities ended down 1.5 cents (0.5%) at $3.215, valuing it at $1.87 billion.
