Charter Hall Retail REIT (ASX:CQR) has increased its offer to acquire Hotel Property Investments (ASX:HPI), raising the bid from $3.65 to $3.85 per security. The revised offer, announced on 18 October 2024, is being positioned as the best and final offer, with no further increases expected. Charter Hall, which already holds a 14.8% stake in HPI, is seeking to take full ownership of the company, with the offer subject to a 50.1% minimum acceptance condition.
The improved offer represents a 17.7% premium over HPI’s undisturbed price of $3.27 per security and is seen as a strategic move by Charter Hall to expand its portfolio of high-quality, net lease retail assets. Charter Hall emphasised the all-cash nature of the deal as a key advantage for HPI shareholders, especially during a time of economic and geopolitical uncertainty.
Ben Ellis, Retail CEO of Charter Hall Retail REIT, said, “This offer provides HPI shareholders with certainty and a compelling valuation, while also strengthening Charter Hall’s asset base with resilient, income-generating properties.”
In response, an HPI representative remarked, “While Charter Hall’s improved offer provides an attractive exit for shareholders, we remain committed to evaluating all options that deliver the best long-term value.”
The offer is set to close on 4 November 2024. If it lapses, HPI’s market price could decline, as it has seen a 15% increase since Charter Hall’s initial investment earlier in the year.