Distressed assets specialist Southey Capital is offering to buy Home REIT shares for £0.04 each, valuing the UK property company at around £32 mln (€38.5 mln).
The voluntary tender offer is open only to holders of electronically held (CREST) shares until 31 December 2024.
Southey reserves the right to reject any offer and will accept tenders on a first-come, first-served basis with no scaling back.
The firm said the aim is to acquire shares without triggering a mandatory takeover bid. This offer provides liquidity for shareholders who may struggle to sell their shares through other means before a potential delisting.
The Home REIT board acknowledged Southey Capital’s announcement but stated it had no prior contact from Southey regarding this offer and cannot confirm its validity. The board also notes Southey’s intention to avoid a mandatory takeover bid by limiting the number of shares purchased.
Home REIT is pursuing an orderly liquidation, aiming to return capital to shareholders after selling its remaining properties. However, shareholder lawsuits and an FCA investigation could delay or prevent these distributions.
The company aims to have its shares re-listed on the London Stock Exchange as soon as possible after releasing its 2023 and 2024 financial reports. The 2023 report is expected by year-end 2024, and the 2024 report in the first quarter of 2025. These reports will include updated property valuations and net asset value per share.
Home REIT has fully repaid its debt, including additional fees, and expects its lender to release its claim on the company’s assets. The remaining 850 properties are on the market with an asking price exceeding £175 mln (€211 mln). Furthermore, sales already agreed should generate £17 mln (€20.5 mln), supplementing rental income to cover operational costs and fees, including the remaining lender payment of £9 mln (€10.8 mln).
