Ashmore Tavern changes hands after successful $80m takeover of Eumundi Group
The Federal Court has given the green light to an $80 million corporate takeover of a bit-player that counted among its assets the recently renovated Ashmore Tavern.
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The recently renovated Ashmore Tavern has been added to the portfolio of a Queensland hospitality giant after its bit-player owner was bought out with the approval of the Federal Court of Australia.
Last month, this masthead revealed Eumundi Group, which owns and operates the Ashmore Tavern, Aspley Central Tavern, and holds freehold titles in shopping centres and pubs at South Bank, Aspley, and Murwillumbah, had caught the eye of a suitor, SEQ Hospitality Group Ptd Ltd.
SEQ Hospitality, which was incorporated for the purposes of the takeover, is owned by business titans Nick Politis, chairman of the Sydney Roosters; prestige auto kingpin Greg Duncan; and former AP Eagers chief executive Martin Ward.
On February 4, Federal Court Justice Michael Feutrill waved through SEQ Hospitality’s proposed scheme of arrangement (i.e. a ‘friendly’ takeover), which valued Eumundi’s shares at $1.62, for a total transaction price of $80,623,787.40.
Earlier, on January 31, Eumundi shareholders voted overwhelmingly in favour of the scheme.
An earlier offer of $1.55 per share had failed to win the approval of all substantial shareholders.
Eumundi and its assets, including the Ashmore Tavern, will now form part of pub giant Fortitudo Group, which already counts among its Gold Coast portfolio Coomera’s Boathouse Tavern and Burleigh Waters’ Treetops Tavern, alongside bottle shops Hope Island Cellars, and Arundel Cellarbrations.
Fortitudo Group also owns and operates Brisbane’s QA Hotel, Caboolture’s Trader Dukes, The Ambassador of Redcliffe, and a suite of bottle shops.
As a result of the takeover, Eumundi directors Joseph Ganim (co-founder of top Brisbane law firm HopgoodGanim), Gilbert De Luca, and Murray Boyte resigned from the board, and were replaced by Mr Ward, Mr Duncan, and Fortitudo Group chief executive Andrew Prothero, and Eumundi has been delisted from the ASX.
Fortitudo Group were contacted for comment.
Constructed in the early 1980s, the Ashmore Tavern underwent a sleek $5m redevelopment in recent years, with upgrades including new indoor and outdoor dining spaces, a new gaming room, a large sports bar, and adjoining balcony.
According to Eumundi’s most recent annual report, food and beverage sales at the Ashmore Tavern ran hot in the first half of FY24, but “softened” in H2.
Gaming revenues at Ashmore and Aspley Central taverns contributed strongly to Eumundi’s FY 2024 after-tax profit of $3.6m.
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