)
Independent Queensland hotel operator Fortitudo Group has lifted the takeover price for pubs owner Eumundi Group (ASX: EBG) as promised to $80.6 million after announcing today that it has secured almost 70 per cent of its fellow Brisbane-based hospitality company.
The takeover offer has been lifted from $1.55 per share to $1.62 per share following a rush of acceptances by Eumundi shareholders in the past week.
Fortitudo subsidiary SEQ Hospitality Group has moved from a 43.7 per cent holding on 6 December to 69.6 per cent this week – passing the 65 per cent threshold to trigger the increased offer well before the 17 January 2025 deadline.
The higher price will apply to all shares acquired by SEQ Hospitality Group via its implementation deed since launching the takeover of Eumundi on 30 October.
The latest valuation of Eumundi is up from $77 million when the takeover bid, which has been unanimously recommended by the Eumundi board, was first announced.
Eumundi Group’s assets include The Plough Inn at Brisbane’s Southbank Parklands, as well as Aspley Central Tavern in the city’s north and Ashmore Tavern on the Gold Coast.
The group also owns the Court House Hotel in Murwillumbah on the northern NSW coast, as well as retail centres at Aspley.
Once completed, the buyout will see these assets join Fortitudo Group’s existing portfolio of liquor outlets and hotels, which include the QA Hotel at James Street in New Farm, as well Trader Dukes, Treetops Tavern and The Boathouse on the Gold Coast.
The upgraded offer price of $1.62 per share compares with a net asset backing of $1.39 per Eumundi share recorded at the end of June this year.
Eumundi Group had total assets of $106.71 million on June 30, but with total liabilities of just under $40 million its net asset position was $66.8 million.
SEQ Hospitality Group says the latest offer price will not be affected by Eumundi’s interim dividend of 2.4c per share which is expected to be declared before Eumundi holds a scheme meeting for shareholders.
The takeover offer remains subject to a minimum 90 per cent acceptance by Eumundi shareholders.
)
