Rich Lister Nick Politis lobs $77m takeover bid for Qld pub owner
Sydney Roosters chairman and Rich Lister Nick Politis has backed a $77 million all-cash takeover bid for ASX-listed pub and shopping centre owner Eumundi Group, headed by prominent Brisbane lawyer and veteran hospitality investor Joe Ganim.
Eumundi is the landlord for the well-known Plough Inn on Brisbane’s South Bank. It also owns and operates the Ashmore Tavern on the Gold Coast, the Aspley Central Tavern in Brisbane’s northern suburbs and the Quench Liquor chain.
SEQ Hospitality Group, which is 50 per cent owned by entities controlled by Mr Politis, and Eumundi Group have entered into a transaction implementation deed under which SEQ undertakes to acquire all Eumundi shares at $1.55 via off-market takeover and scheme of arrangement.
The offer, which represents a 23 per cent premium to Eumundi’s closing price on Tuesday, has been recommended by the company’s directors, which hold over 43 per cent of its shares. Mr Ganim holds a 26.16 per cent interest and fellow director Gilbert De Luca, 17.18 per cent.
“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,” Mr 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 major investor in Eumundi is Steven Shoobridge, owner of Star Group, one of the country’s biggest private operators of pubs and liquor stores, who controls about 16.5 per cent of the register.
Eumundi generated revenues of $30.4 million in FY24 and net profits after tax of $4.3 million.
As well as its pubs portfolio, Eumundi’s investment portfolio includes the Aspley Shopping Centre and Aspley Arcade Shopping Village and the Court House Hotel in the NSW far north coast town of Murwillumbah.
The company, which floated on the ASX in 1989, began as a craft brewery in the rural town of Eumundi on the Sunshine Coast.
Mr Politis, worth $2.36 billion according to the 2024 Financial Review Rich List, is a major shareholder in ASX-listed car dealership group Eagers Automotive.
Alongside his 50 per cent stake in SEQ Hospitality Group, former Eagers Automotive CEO Martin Ward and Eagers Automotive director Greg Duncan each own 25 per cent.
SEQ Hospitality Group forms part of the Fortitudo Group, which operates five pubs including the Treetops Tavern at Burleigh Waters on the Gold Coast and the QA Hotel in Brisbane’s New Farm as well as 17 bottle shops.
When contacted by The Australian Financial Review, Mr Politis, who earlier this year paid $50 million for two Porsche dealerships in Melbourne, declined to comment. He said Fortitudo Group CEO Andrew Prothero was driving the deal.
Mr Prothero said Eumundi was an established and reputable business that had been trading profitably since 1989.
“We see lots of opportunity in south-east Queensland,” Mr Prothero said.
Should the deal succeed, the Eumundi assets will bolt onto the Fortitudo business.
The proposed deal is the latest sign of corporate and wealthy investor interest in the pub sector after Charter Hall lobbed two bids for ASX-listed landlord HPI.
Detailed information relating to the takeover offer will be set out in SEQ’s bidder’s statement and Eumundi’s target’s statement, which are each expected to be dispatched to shareholders before the end of the year.
The scheme will be set out in the Scheme Booklet, which is expected to be dispatched to Eumundi shareholders in early January 2025.
Eumundi has appointed Taylor Collison as its financial adviser and HopgoodGanim Lawyers as its legal adviser. SEQ has appointed Morgans as its financial adviser and Clayton Utz as its legal adviser.
