The battle for control of a company that owns three Gold Coast pubs is over after the board of Hotel Property Investments accepted defeat.
Charter Hall Retail REIT and Hostplus first launched its takeover raid for Hotel Property Investments on September 9 last year and the battle raged for five months before the raiders managed to grab control.
HPI owns 58 hotels across Australia including the Coomera Lodge Hotel at Oxenford, the Ferry Road Tavern at Southport and The Wallaby Hotel at Mudgeeraba.
In a statement to the Australian Stock Exchange, HPI Chairman Giselle Collins said the takeover “materially undervalues” the company but the raiders had now gained control of more than 62 per cent of the company.
Ms Collins said HPI’s directors continued to consider that the offer of $3.752 a share was not compelling and was not adequate compensation, but the raiders’ success meant that they would have considerable control of the company and its liquidity.
“The Board has determined that in view of the bidders’ control of HPI, the risk associated with maintaining a minority security holding in HPI outweigh the benefits,’’ she said.
Ms Collins said remaining shareholders should accept the offer.
Charter Hall Group managing director David Harrison also said the remaining HPI shareholders should accept they offer.
“The HPI board has changed his recommendation and is now recommending HPI security holders accept the offer,’’ Mr Harrison said.
“Giselle Collins, the HPI chairman, and Lachlan Edwards the HPI director who held the largest security holding, have already accepted the offer.”