Alternative Income REIT says cannot take a view on Glenstone approach

(Alliance News) - Alternative Income REIT PLC on Monday said it is not in a position to "form a view on the merits or otherwise" of a takeover proposal from shareholder Glenstone REIT PLC.

On Friday, Glenstone, which owns around 24% of Alternative Income REIT, said it was considering an all-cash takeover of the commercial property investor.

On Monday, Alternative Income REIT confirmed it has received a non-binding proposal and said: "The independent directors, who engaged with Glenstone and its advisers prior to its announcement, note that the possible offer does not include any offer price or range of prices, nor the terms and conditions on which any possible offer might be made."

As a result, the firm said the proposal "does not include terms capable of detailed evaluation" and said it is not able to "form a view on the merits or otherwise".

Alternative Income noted that this is not the first time Glenstone has sized up a bid.

In November, it made an indicative cash proposal at 66.5 pence per share, around GBP53.5 million in total, "without evidence of funding". That tilt was at an 11% discount to its closing share price of 75p a day earlier.

Shares in Alternative Income REIT were down 2.3% at 70.22p on Monday morning, for a market capitalisation of around GBP56.5 million.

The firm added: "Whilst the independent directors recognise that the company's market capitalisation is at the smaller end of the REIT market, the independent directors remain confident in the company's portfolio and its prospects."

Alternative Income REIT said its independent directors believe it is now for Glenstone to put forward a proposal, including details of the price being offered, alongside any conditions, so the proposal can be evaluated.

"Until Glenstone has provided the independent directors with a proposal that is capable of being recommended to Alternative Income's shareholders, which Glenstone have failed to do to date, the independent directors do not consider it appropriate to provide due diligence access to Glenstone," the firm added.

Glenstone must either announce a firm intention to make an offer, or that it does not intend to make an offer, by June 12.

By Michael Hennessey, Alliance News reporter

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