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Home Retail agrees to recommend Sainsbury's offer

Fri, 01st Apr 2016 07:05

(ShareCast News) - The board of Home Retail has agreed to recommend Sainsbury's takeover offer, with the grocer applying for a court-sanctioned scheme of arrangement to process the acquisitionSainsbury's, which still expect the traction to complete in the third quarter of this year, has offered Home Retail shareholders 0.321 new shares in the supermarket group and 55p cash, plus 27.8p in dividends.The dividend is made up of a 25p payment for the Homebase sale plus the 2.8p Home Retail final dividend for the 2016 financial year, meaning a 'special dividend' referenced in the original announcement will not now be paid.With Sainsbury's shares closing at a price of 276.3p on Thursday, the offer values the Argos owner's shares at 143.7p apiece and the company's total equity at roughly £1.2bn.Adding in the dividend payments due, the deal values Home Retail at 171.5p per share, or roughly £1.4bn in total.The acquisition will need to be approved by Home Retail shareholders, who will hold roughly 12% of Sainsbury's equity on completion of the deal, with a vote to come in the coming month.Sainsbury's chairman David Tyler said the acquisition will be carried out through a scheme of arrangement, which he said would help enable a speedy completion "which is in the interests of the customers, colleagues and shareholders of both businesses"."Our next steps are to focus jointly on ensuring we obtain the necessary regulatory clearances and that we are well prepared for the future integration of these two great retailers."His sales pitch to Home Retail shareholders was that the combined business "will offer a multi-product, multi-channel proposition, with fast delivery networks, which we believe will be very attractive to customers and which will create value to both sets of shareholders."With the offer representing a premium of 74% to the HRG share price on 4 January 2016, analysts at Shore Capital said this was a "substantial mark-up" and they were comfortable that Sainsbury's "has not moved into 'over-pay' territory".However, ShoreCap added: "Whilst this is so, we watch with some trepidation to see what the UK Competition & Markets Authority (CMA) makes of this proposed acquisition - Lord knows how their minds work on April Fool's Day."Sadly, in the real world that businesses have to operate in, rather than the parallel and largely unaccountable environment of the CMA, we harbour concerns that this deal could yet face timetable challenges from the regulator; we hope we are incorrect in this respect.
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8 Jan 2024 13:30

IN BRIEF: Home REIT exchanges additional 81 properties in December

Home REIT PLC - London-based real estate firm, which invests in housing for homeless people - Says rent collection including arrears represented 12% of rent invoiced in December. Adds that 81 properties were exchanged for GBP16.4 million in December, with completion expected in January. Also notes it is continuing to undertake a comprehensive review of its property portfolio.

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21 Dec 2023 13:23

UPDATE: Home REIT shareholders demand compensation for investment loss

(Alliance News) - Shareholders of Home REIT PLC are demanding compensation for losses on their investments, law firm Harcus Parker said Wednesday.

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20 Dec 2023 14:08

UPDATE: Home REIT shareholders demand compensation for investment loss

(Alliance News) - Shareholders of Home REIT PLC are demanding compensation for losses on their investments, law firm Harcus Parker said Wednesday.

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20 Dec 2023 09:53

Home REIT portfolio valuation falls despite same number of properties

(Alliance News) - Home REIT PLC on Wednesday reported a decline in its portfolio valuation as the number of properties remained unchanged.

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20 Dec 2023 08:58

Home REIT sees huge drop in portfolio value after audit

(Sharecast News) - Homeless accommodation group Home REIT said it is "extremely disappointed" with a material reduction in the estimated value of its portfolio after an audit wrote down valuations by nearly 58%, causing a significant number of shareholders to launch a claim against the business.

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28 Nov 2023 12:02

Home REIT reaches agreement for Eden Safe to surrender leases

(Alliance News) - Home REIT PLC on Tuesday said it reached an agreement with Eden Safe Homes CIC for the latter to surrender leases on properties.

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9 Nov 2023 11:27

IN BRIEF: Home REIT sells 153 properties for 35% of purchased value

Home REIT PLC - London-based real estate firm, which invests in housing for homeless people - Says it has sold 153 properties, representing 6.5% of its portfolio, for GBP24.3 million at auction. Says completion of the sales is expected within a month. Says the properties sold were in poor condition, mostly vacant and would require significant expenditure to bring them to specification. Says the sale represents around 35% of the price the properties were purchased for. Adds that proceeds will be used to reduced borrowings and provide working capital.

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6 Nov 2023 09:11

Home Reit sells 14 more properties; October rent collection increases

(Alliance News) - Home REIT PLC on Monday said it has sold a further 14 properties for GBP9.0 million pounds in the month of October.

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29 Sep 2023 09:39

Home REIT sells further 137 properties for GBP22.8 million

(Alliance News) - Home REIT PLC on Wednesday said it exchanged on the sale of 137 properties worth GBP22.8 million.

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22 Sep 2023 09:18

Home REIT removes exposure after liquidating tenant surrenders leases

(Alliance News) - Home REIT PLC on Friday said that Redemption Project CIC has agreed to surrender its leases on 146 properties, equating to around 6% of Home REIT's portfolio by number of properties.

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7 Sep 2023 10:56

Troubled Home REIT sees another tenant enter voluntary liquidation

(Alliance News) - Home REIT PLC on Thursday said that Supportive Homes CIC, a tenant of 209 properties in the company's portfolio, has entered into voluntary liquidation.

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4 Sep 2023 10:38

Home REIT makes progress with tenants and disposals

(Sharecast News) - Home REIT updated the market on its last month of activities on Monday, reporting that its property adviser AEW had completed tenant engagement across its entire portfolio.

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4 Sep 2023 10:12

Home REIT says reviews ongoing, may publish accounts late this year

(Alliance News) - Home REIT PLC on Monday said its new investment manager is continuing to review all tenants and that property valuations and inspections, required to publish outstanding accounts and restore its shares, are still underway.

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23 Aug 2023 09:56

Home REIT receives Mears sub-leases on 100 properties from One CIC

(Alliance News) - Home REIT PLC on Wednesday said that One (Housing & Support) CIC has agreed to surrender its leases on 100 properties.

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14 Aug 2023 15:43

UK shareholder meetings calendar - next 7 days

Tuesday 15 August 
Castings PLCAGM
Challenger Energy Group PLCAGM
Momentum Multi-Asset Value Trust PLCGM re reconstruction and voluntary winding-up
Primorus Investments PLCAGM
WH Ireland Group PLCGM re dealings in the new ordinary shares
Wednesday 16 August 
Cadence Minerals PLCAGM
Calnex Solutions PLCAGM
NextEnergy Solar Fund LtdAGM
NFT Investments PLCAGM
StreaksAI PLCAGM
VSA Capital Group PLCAGM
Thursday 17 August 
Harvest Minerals LtdAGM
Quantum Exponential Group PLCAGM
Windward LtdAGM
Yourgene Health PLCGM and court meeting re takeover by Novacyt
Friday 18 August 
Adams PLCAGM
ME Group International PLCGM re proposed share buyback
Oxford BioDynamics PLCGM re placing
Pathfinder Minerals PLCGM re disposal of the subsidiary
Monday 21 August 
Calculus VCT PLCAGM
Home REIT PLCGM re changes to the investment policy
  
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