(Alliance News) - Home REIT risks prolonging "uncertainty regarding" its future, a law firm said on Thursday, after the company announced a deadline for a Bluestar Group Ltd takeover offer was extended.
London-based firm Harcus Parker deemed the delay "disappointing". Home REIT said Bluestar's new deadline is May 11, extended from Thursday.
Jennifer Morrissey, a partner at Harcus Parker, said: "It is disappointing for shareholders to see Home REIT delay another crucial decision regarding the future of the organisation, and to further draw out the uncertainty regarding the company's future. Its announcement this morning fails to explain any necessary detail surrounding the potential offer and demonstrates an ongoing lack of transparency in disclosing full details of the link and interactions between Bluestar and Alvarium. The fact that it has been left to shareholders and others to piece together the connections between the two is itself a cause for concern."
Alvarium is Home REIT's current investment advisor.
Harcus Parker back in December launched a claim on behalf of investors in Home REIT who have suffered losses.
"Alongside the significant declines in the company's share price in recent months, our independent investigations conducted using publicly available information over the course of several months indicate that there may be fundamental issues with the Home REIT's business model and the valuation of its assets," according to Harcus Parker's Home REIT claim.
Home REIT received an unsolicited takeover approach from Bluestar in February, although financial details were not disclosed. Bluestar is an investment company based in London.
Home REIT noted that there is "no certainty" over whether an offer will be made.
Home REIT's shares are currently suspended from trading in London, after it failed to publish its annual financial report for the year ended August 31 in time.
By Sabrina Penty; Alliance News reporter
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