Sydney Roosters chairman endorses $77M takeover bid for Queensland pub owner
Sydney Roosters chairman and Rich Lister Nick Politis has endorsed a $77 million all-cash takeover bid for ASX-listed pub and shopping centre owner Eumundi Group, led by Brisbane lawyer and hospitality investor Joe Ganim.
Eumundi Group owns popular Queensland properties, including the Plough Inn at Brisbane's South Bank, Ashmore Tavern on the Gold Coast, Aspley Central Tavern, and the Quench Liquor chain.
Eumundi reported revenues of $30.4 million and a net profit after tax of $4.3 million for FY24.
SEQ Hospitality Group which is 50% owned by Politis-controlled entities, has signed a transaction implementation deed with Eumundi to acquire all shares at $1.55 via an off-market takeover and scheme of arrangement.
The offer is a 23% premium over Eumundi’s last closing price and is recommended by the board, which owns 43% of shares. Ganim and director Gilbert De Luca hold 26.16% and 17.18%, respectively.
“We are pleased to recommend the SEQ transaction, which offers Eumundi shareholders an opportunity to realise their investments at a substantial premium to the current market price,” Ganim 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. SEQ is part of an established group [Fortitudo] with an excellent understanding of the hospitality industry.”
Another significant investor in Eumundi Group is Star Group owner Steven Shoobridge, one of Australia's largest private pub and liquor store operators, with a 16.5% stake.
In addition to its pubs, Eumundi’s assets include the Aspley Shopping Centre, Aspley Arcade Shopping Village, and the Court House Hotel in Murwillumbah, NSW. Originally a craft brewery founded in Eumundi on the Sunshine Coast, the company has been listed on the ASX since 1989.
Nick Politis is estimated to be worth $2.36 billion according to the 2024 Financial Review Rich List and is also a major shareholder in ASX-listed Eagers Automotive.
Politis holds a 50% stake in SEQ Hospitality Group, with former Eagers CEO Martin Ward and director Greg Duncan each owning 25%. SEQ Hospitality is part of Fortitudo Group, which operates five pubs, including Treetops Tavern in Burleigh Waters and QA Hotel in Brisbane, as well as 17 bottle shops.
If the deal goes through, Eumundi’s assets will integrate into Fortitudo Group’s portfolio. The proposal marks another instance of corporate and high-net-worth interest in the pub sector, following Charter Hall’s recent bids for ASX-listed pub landlord HPI.
Jonathan Jackson, 31st October 2024
