Corporate Action: Ignore Charter Hall’s Dud Takeover Offer
We recommend rejecting the Charter Hall consortium’s uncompelling takeover offer for no-moat Hotel Property Investments, or HPI, providing this advice is consistent with your individual investing goals. The AUD 3.65 per share all-cash offer price is near the middle of our 3-star band. It represents an insufficient 4% premium to our unchanged AUD 3.50 per share fair value estimate, and a 10% discount to net tangible asset backing.