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(Sharecast News) - Real estate investment trust AEW announced on Thursday that it is once again mulling a potential all-share takeover offer for Alternative Income REIT at a price higher than Glenstone REIT's approach last month.
Under the terms of the possible offer, AIRE shareholders would receive 0.725 shares in AEW for each share held, calculated at a 6% discount to AIRE's net asset value per share.
AEW is returning to the negotiating table after having walked away from an "indicative and non-binding" approach in April, after the offer deadline lapsed.
Glenstone REIT, AIRE's largest shareholder with a 24.8% stake, announced in June that it made an improved 56.3m cash offer for AIRE, valuing the firm at 71.4p.
After a 1.4p dividend, that would reduce to 70p - some 17% below its NAV per share of 84.4p as of 31 March - though AIRE said it was "considering" the offer.
The latest AEW potential offer, however, is 7.4% higher than Glenstone's.
In a statement to shareholders on Thursday, AEW 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 8pence. The possible offer would be expected to be earnings accretive for AEWU."
AIRE has not yet released a statement commenting on AEW's latest approach.
See the latest RNS on Investegate.
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