Sydney Roosters chairman’s takeover bid for Queensland pubs
Roosters chairman Nick Politis is backing a $77m takeover of Eumundi Group which owns several pubs and properties across South East Queensland.
The billionaire chairman of Sydney Roosters is backing an offmarket takeover bid for several popular pubs across Maroons territory stretching from Brisbane to the Gold Coast.
Richlister Nick Politis’ $77m “friendly” takeover is via majority holdings in SEQ Hospitality Group which has entered a transaction implementation agreement with Queensland-based Eumundi Group Limited.
The Plough Inn is the premier trump card for SEQ Hospitality should the deal go through.
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Eumundi’s attractiveness includes its further 89-year hold on the head lease of iconic 1885 Brisbane pub The Plough Inn in Southbank – bought for $13.1m in 2017 in an area visited by over 10 million locals and tourists a year.
The Queensland firm also owns properties like The Aspley Central Tavern in Brisbane’s northside as well as The Ashmore Tavern on the Gold Coast, plus independent alcohol retailer Quench Liquor and two shopping centres.
Mr Politis is already heavily invested in pubs and hotels via several of his companies. Picture: Jason McCawley/Getty Images.
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Mr Politis already has a substantial footprint in South East Queensland via his shareholding in SEQ Hospitality Group which is part of the Fortitudo Group that owns and runs several venues like the QA Hotel in New Farm and Treetops Tavern in Burleigh, three more hotels and 17 bottle shops.
The takeover deal of $1.55 a share has been backed by Eumundi’s directors who hold 43.34 per cent of Eumundi’s stock, the Australian Stock Exchange was told in a statement Monday.
The 100 per cent takeover price was a premium of around 23 per cent over the closing price of Eumundi shares on October 29 ($1.26) when SEQ first made moves towards the firm.
Shares have since risen. sitting at $1.62 at Monday’s close.
The Ashmore Tavern is part of the SEQ-Eumundi takeover deal.
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Eumundi non executive chairman, Brisbane corporate lawyer Joe Gamin, who has interest in 13,021,572 shares (or 26.16 per cent) would stand to make $20.18m off the deal, while fellow director Gilbert De Luca – who has 8,548,118 Eumundi shares (or 17.18 per cent) – would pocket about $13.24m.
The takeover is subject to a 90 per cent minimum acceptance by Eumundi shareholders, and comes ahead of a general meeting at HopgoodGanim Lawyers office in Brisbane’s Eagle Street on November 29 – though they are not expected to received documentation around the deal until the end of the year.
The Aspley Central Tavern is in a rapidly growing part of Brisbane’s northside.
Mr Ganim said the SEQ transaction “offers Eumundi shareholders an opportunity to realise their investments at a substantial premium to the current market price” – taken to mean the date of first approach.
“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,” he said.
“We believe this transaction not only provides shareholders with an attractive exit, but also secures the continued success of Eumundi’s current business operations.”
The Courthouse Hotel just south of the border would also form part of the deal.
He said SEQ was part of an established group which would mean a “seamless transition” for the pubs and properties involved.
Eumundi has appointed Taylor Collison as its financial advisor and HopgoodGanim Lawyers as its legal advisor. SEQ has appointed Morgans as its financial advisor and Clayton Utz as its legal advisor.
