AEW UK confirms considering possible offer for Alternative Income REIT
AEW UK REIT PLC on Thursday confirmed it is considering possible takeover offer for fellow real estate investment trust Alternative Income REIT PLC.
Under the all-share proposal, Alternative Income shareholders would receive 0.725 of a AEW UK REIT share for each Alternative Income share held.
AEW UK said the possible acquisition would be expected to be earnings accretive.
AEW UK shares were down 0.9% to 105.80 pence each at noon on Thursday in London, making the offer worth 76.71p per Alternative Income share. The stock was trading up 3.4% to 70.92p on Thursday.
AEW UK has until August 13 to announce a firm intention to make an offer for Alternative Income or walk away.
AEW UK said: "The possible offer could lead to the combination of two REITs with aligned portfolios, offering greater portfolio diversification, the benefits of increased scale, a reduction in operating costs and an attractive ongoing dividend per share, with AEWU currently paying an annual dividend of 8 pence."
Last week, Alternative Income said it was considering a sweetened takeover offer from Glenstone REIT PLC, but said that the new offer remained below its net asset value at the end of March.
Glenstone in early July announced an offer of 71.4p per share, or £57.5 million in total, which it said is "final", adding it will only consider increasing the offer if another suitor swoops in with a competing bid. The AEW UK offer is 7.4% higher than Glenstone's latest offer at AEW UK's current share price.
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