By Ian Neubauer

Hedley Leisure and Gaming Property Fund (HLG) dropped a bombshell today by announcing it is fielding offers from parties interested in acquiring the fund.

“As a consequence of the current low trading price for HLG stapled securities, HLG has received approaches from several independent parties which have indicated interest in acquiring HLG or part or all of its assets,” HLG chairman Colin Henson said in a statement to the Australian Stock Exchange (ASX).

“Given these approaches, HLG has appointed ANZ Mergers & Acquisitions division and lawyers Minter Ellison to review HLG’s strategic options, including to investigate those approaches and alternative proposals, with a view to maximising value for all of HLG’s members,” Henson said.

HLG’s strategic turnaround follows a trying number of weeks that saw the fund’s shares drop in value 44 per cent over a two day period, two self-imposed trading halts and repeated announcements dispelling media reports that the fund is experiencing financial strife.

Today’s announcement has had an immediate effect on the market, lifting HLG’s share prices from an opening record-low of 84 cents to 95 cents by 2:00pm.

HLG shares traded at $3.50 when the fund debuted on the ASX in October last year.


The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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