)
Independent Queensland hotel operator Fortitudo Group is poised to double its portfolio of pubs, including the addition of prized trophy asset The Plough Inn at Brisbane’s Southbank, through a $77 million takeover of Eumundi Group.
The off-market bid, which is priced at $1.55 per share, has been unanimously recommended by the Eumundi board subject to an independent expert’s review of the deal which has been put forward by Fortitudo subsidiary SEQ Hospitality Group.
The offer price is pitched at a 23 per cent premium to the Eumundi share price’s close of $1.26 yesterday. The company’s shares shot more than 22 per cent higher today following the announcement to be trading at $1.545 at 12.06pm (AEDT).
“The board has carefully considered the SEQ transaction in the context of other available alternatives as well as the continued uncertainty facing wider global markets,” says Eumundi chairman Joe Ganim.
“We believe this transaction not only provides shareholders with an attractive exit, but also secures the continued success of Eumundi’s current business operations.”
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.
The Plough Inn, Court House Hotel and Aspley Arcade shopping centre, which comprise Eumundi’s investment portfolio, were valued at $47 million at the end of June this year.
The Eumundi assets will 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.
“SEQ is part of an established group with an excellent understanding of the hospitality industry,” says Ganim.
“The board is confident that SEQ’s leadership team, with their proven industry expertise and track record of effective management, is well-equipped to manage Eumundi’s operations and drive continued growth.
“Their values align with our commitment to operational excellence and the well-being of our dedicated employees, ensuring both a seamless transition and a bright future for the business under their stewardship.”
The takeover offer is subject to a minimum 90 per cent acceptance by Eumundi shareholders, with the company’s board already accounting for 43.34 per cent of the company’s shares ready to accept the SEQ bid.
Eumundi posted a net profit of $3.62 million in FY24, up from $1.447 million a year earlier, on revenue of $26.1 million.
)
