Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Hotel Property Investments / Event-Driven

<ul>
<li>Pub play <a href="https://www.smartkarma.com/entities/hotel-property-investments" target="_blank" data-smartkarma-citation="entities:9850:1" rel="noopener">Hotel Property Investments (HPI AU)</a> has announced - and summarily <a href="https://announcements.asx.com.au/asxpdf/20240909/pdf/067ntttrhq85j9.pdf" target="_blank" rel="noopener">rejected</a> - a A$3.65/share cash Offer from <a href="https://www.smartkarma.com/entities/charter-hall-retail-reit" target="_blank" data-smartkarma-citation="entities:11375:1" rel="noopener">Charter Hall Retail Reit (CQR AU)</a>.</li>
<li>Terms are a 14.8% premium to the undisturbed share price on March 28; following which a 14.8% "strategic interest" (@ A$3.35/share) was <a href="https://announcements.asx.com.au/asxpdf/20240328/pdf/061yzcklzj5ndh.pdf" target="_blank" rel="noopener">acquired</a> by CQR and <a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall (CHC AU)</a>.  </li>
<li>
The Offer is subject to a 50.1% acceptance hurdle. The Offer should be open for acceptances around the 23 September.</li>
</ul>


Pub play Hotel Property Investments (HPI AU) has announced - and summarily rejected - a A$3.65/share cash Offer from Charter Hall Retail Reit (CQR AU).
Terms are a 14.8% premium to the undisturbed share price on March 28; following which a 14.8% "strategic interest" (@ A$3.35/share) was acquired by CQR and Charter Hall (CHC AU).  

The Offer is subject to a 50.1% acceptance hurdle. The Offer should be open for acceptances around the 23 September.


Hotel Property (HPI AU) Rejects Charter Hall's A$3.65/Share Offer

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

In July 2021, Australia's largest freehold pub properties owner <a href="https://www.smartkarma.com/entities/ale-property-group" target="_blank" data-smartkarma-citation="entities:7484:1" rel="noopener">Ale Property (LEP AU)</a> ("ALE") received an "unsolicited, confidential, conditional, non-binding indicative proposal" from the Charter Hall Consortium (a consortium managed by <a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall (CHC AU)</a> comprising <a href="https://www.smartkarma.com/entities/charter-hall-long-wale-reit" target="_blank" data-smartkarma-citation="entities:24076:1" rel="noopener">Charter Hall Long Wale Reit (CLW AU)</a> ("CLW") and superannuation fund Hostplus). The Independent Board Committee established by ALE's Board assessed the proposal and decided to grant the Charter Hall Consortium a period of due diligence.A couple of months later, on 20th September 2021, ALE announced they had entered into a Scheme Implementation Deed with the Charter Hall Consortium. Based on this agreement, ALE securityholders will have the default option of accepting 0.4080 CLW securities and cash of A$3.673 as consideration per ALE security or they can choose between an all-scrip consideration of 1.1546 CLW securities/ALE Security and an all-cash consideration of A$5.681 cash/ALE security. On top of that, ALE securityholders will also be entitled to receive ALE's September quarter distribution of A$0.055/ALE security. More below the fold. <hr>For more information about M&amp;A rules, regulations, and practices in Australia, please refer to <a href="https://www.smartkarma.com/insights/quiddity-australia-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:30118" rel="noopener">Quiddity Australia M&amp;A Guide 2019</a> and <a href="https://www.smartkarma.com/insights/quiddity-m-a-australia-foreign-investment-reforms" target="_blank" data-smartkarma-citation="insights:40210" rel="noopener">Quiddity M&amp;A: Australia Foreign Investment Reforms</a>

In July 2021, Australia's largest freehold pub properties owner Ale Property (LEP AU) ("ALE") received an "unsolicited, confidential, conditional, non-binding indicative proposal" from the Charter Hall Consortium (a consortium managed by Charter Hall (CHC AU) comprising Charter Hall Long Wale Reit (CLW AU) ("CLW") and superannuation fund Hostplus). The Independent Board Committee established by ALE's Board assessed the proposal and decided to grant the Charter Hall Consortium a period of due diligence.A couple of months later, on 20th September 2021, ALE announced they had entered into a Scheme Implementation Deed with the Charter Hall Consortium. Based on this agreement, ALE securityholders will have the default option of accepting 0.4080 CLW securities and cash of A$3.673 as consideration per ALE security or they can choose between an all-scrip consideration of 1.1546 CLW securities/ALE Security and an all-cash consideration of A$5.681 cash/ALE security. On top of that, ALE securityholders will also be entitled to receive ALE's September quarter distribution of A$0.055/ALE security. More below the fold. For more information about M&amp;A rules, regulations, and practices in Australia, please refer to Quiddity Australia M&amp;A Guide 2019 and Quiddity M&amp;A: Australia Foreign Investment Reforms 

ALE-Charter Hall: A Post-Lockdown Bet on Australian Pubs

Australia

Ale Property Group is a property trust that manages and leases pubs in Australia.  The Group also has property funds management operations.

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Hotel Property (HPI AU) Rejects Charter Hall's A$3.65/Share Offer

Currently trading marginally through terms. If in, stay in. I'd be happy buying around, or below terms. Expect Charet Hall to bump.

David Blennerhassett

ALE-Charter Hall: A Post-Lockdown Bet on Australian Pubs

Australian property fund Charter Hall is acquiring Australia's largest owner of free hold pubs for an equity value of A$1.2bn - a bet on the post...

Janaghan Jeyakumar, CFA