Hot on the heels of Charter Hall and Hostplus’ successful play on HPI, SEQ Hospitality has secured the keys for listed publican landlord Eumundi Group.
Eumundi began as a craft brewery named after its Sunshine Coast location, going on to list on the ASX in 1989 (ASX:EBG). It amassed freeholds including South Bank’s Plough Inn, Murwillumbah’s Court House, and Aspley Shopping Centre and Aspley Arcade Shopping Village. It owns and operates the Ashmore Tavern and Aspley Central Tavern, in north Brisbane, as well as the Quench chain of liquor stores.
Throughout 2024 EBG shares averaged around $1.20, with market cap reported at $79.62 million and revenues of $30.4 million, earning a 14 per cent return.
SEQ Hospitality Group, headed by Sydney Roosters chairman and rich-lister Nick Politis, is part of the Fortitudo Group and both operates and owns freehold pubs. Companies controlled by Politis own half of SEQ.
The south-east Queensland-based Group threw up a $77 million bid late last year, to purchase all Eumundi shares for a 23 per cent premium, of $1.55, through a scheme of arrangement.
EBG principals and majority shareholders Brisbane lawyer Joe Ganim and fellow director Gilbert De Luca together hold more than 43 per cent of the company, and recommended shareholders accept what they described as “an attractive exit”.
But one significant shareholder held out. Steven Shoobridge, owner of Star Group and a major investor in Eumundi, protesting that “the offer is too low” increased his holdings to just over 18 per cent in October, suggesting he is a buyer at that price and “they need to increase their offer for me to be a seller”.
In December the EBG share price peaked at $1.70 before tapering off.
But SEQ had cleared its takeover hurdles, and freed from key conditions posted Court orders approving the Scheme with the Australian Securities and Investments Commission (ASIC) on 5 February 2025, bringing the Scheme legally into effect.
The following day Eumundi requested all its shares on the ASX be suspended at the close of trading.
Under the Scheme, shareholders are set to receive cash consideration of $1.62 per Eumundi share held on Friday (7 February).
Thursday’s announcement posted that SEQ held more than 84 per cent of voting power, and has officially withdrawn its offer to further parties.
