Alternative Income says possible offer by AEW UK beats Glenstone bid

Alternative Income REIT PLC on Monday said AEW UK REIT PLC's possible takeover offer is more attractive than that of Glenstone REIT PLC.

Alternative Income is a real estate investment trust focused on specialised alternative property sectors such as healthcare, education and hotels.

It said AEW UK's possible offer had an implied value of around 77.4 pence per share, or around 11% higher than Glenstone REIT's implied offer value of 70.0p.

Alternative Income said the implied value of AEW UK's possible offer is based on AEW UK's share price of 106.8p on Wednesday, the last business day before its possible offer announcement.

Alternative Income shares were 1.5% higher at 71.25p each on Monday morning in London, while AEW UK shares were up 0.4% at 105.80p.

Under the all-share proposal announced by AEW UK on Thursday, Alternative Income shareholders would receive 0.725 of an AEW UK share for each Alternative Income share held.

AEW UK said at the time: "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."

Alternative Income on Monday recommended that shareholders who have already accepted the Glenstone offer withdraw their acceptances. Further, it said shareholders should take no action in relation to the possible offer by AEW UK at this time, as there can be no certainty that an offer will be made.

AEW UK has until August 28 to either announce a firm intention to make an offer, or walk away.

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