Alternative Income REIT said that an offer by peer Glenstone Property to acquire a 25% stake significantly undervalues the company, adding that the group is ‘well positioned to pursue its proposed enhanced strategy’.
Glenstone is offering 59.25 pence per share for up to 20 million Alternative Income ordinary shares AIRE, representing up to 25.0% of the firm’s share capital. The offer represents a discount of 29% to the 30 June 2020 net asset value per share of 83.58 pence, but also a premium of 12.9% to the closing price on October 26.
‘The Board believes that with additional investment it can deliver to its shareholders both strong performance and a secure and progressive dividend,’ Alternative Income said in a statement.
The Tender Offer is conditional on receiving commitments from at least 20% of the shareholder base.
Glenstone is a public limited company incorporated in England & Wales which qualifies as a UK real estate investment trust and which is listed on The International Stock Exchange (TISE) in Guernsey. It is an internally managed, diversified property investor with a portfolio of more than 100 properties across the UK.
Glenstone said that it does not intend to make an offer to acquire the entire issued and to be issued ordinary share capital of Alternative Income nor does it intend to seek a direct role in the management of the firm’s portfolio.
Alternative Income owns a total of 19 fully let assets across the UK, valued at around £105 mln.
