Hotel Property Investments Takeover Offer Extended to 14 March, Now Unconditional

Extension of Offer Period

Charter Hall Wholesale Management Limited, acting as trustee for the CH Investment Trust and CH Investment Co Trust, has formally extended the closing date of its off-market takeover offer for Hotel Property Investments (ASX: HPI) to 7:00pm Sydney time on 14 March 2025. This marks a significant extension from the original closing date of 31 January 2025, providing additional time for HPI securityholders to consider the offer.

The extension was announced via a notice lodged with the Australian Securities and Investments Commission (ASIC) and communicated to HPI securityholders in accordance with the Corporations Act 2001 (Cth). The offer relates to all stapled securities in Hotel Property Investments, which comprises both Hotel Property Investments Limited and Hotel Property Investments Trust.

Unconditional Offer Status

Importantly, the offer is now unconditional. As disclosed in the Fourth Supplementary Bidder's Statement dated 6 December 2024, all defeating conditions attached to the offer have been waived or satisfied. This development removes key uncertainties that may have previously deterred some securityholders from accepting the bid.

The unconditional status of the offer could increase the likelihood of higher acceptance rates, as securityholders gain greater confidence in the certainty of the transaction proceeding. Charter Hall’s strategic patience in extending the offer period suggests a deliberate approach to securing a comprehensive acquisition of HPI’s stapled securities.

Context and Market Implications

The takeover bid has been active since September 2024, with multiple supplementary bidder statements issued to update terms and conditions, reflecting the evolving nature of the offer and regulatory requirements. Charter Hall’s role as trustee for the CH Investment Trusts positions it as a significant player in the real estate investment sector, particularly within the property investment subsector.

Extending the offer period allows more time for due diligence, shareholder consideration, and potential market developments that could influence the bid’s outcome. For HPI securityholders, this extension provides a longer window to evaluate the offer’s merits against alternative investment opportunities or market conditions.

From a market perspective, the extension and unconditional status may signal Charter Hall’s commitment to consolidating its position in the hotel property investment space, potentially reshaping ownership structures and influencing sector dynamics.

Next Steps for Investors

Securityholders who have not yet accepted the offer can do so via multiple channels, including online acceptance platforms, returning signed acceptance forms, or instructing their stockbrokers. Those who have already accepted need take no further action.

Investors and analysts will be watching closely for acceptance rates as the new closing date approaches, as well as any further communications from Charter Hall that might hint at strategic intentions post-acquisition.