LONDON - Home REIT plc has acknowledged an unsolicited tender offer from Southey Capital Ltd to acquire the company's shares at 4 pence each. The offer, announced on Tuesday, has not involved any prior communication with Home REIT, leaving the board unable to verify its legitimacy. Southey aims to avoid triggering a mandatory offer under the Takeover Code by limiting acceptances.
Home REIT is in the process of a managed wind-down and is focused on returning capital to shareholders after selling its property portfolio. However, ongoing shareholder litigation and an FCA investigation may restrict distributions. The company is also working towards relisting its shares on the London Stock Exchange (LON:LSEG) and plans to publish historical financial information by the end of 2024, with further results expected in early 2025.
The company has recently cleared its debts, including an additional fee to its lender, which will release the lender's charge on the company's assets. The remaining property portfolio, consisting of 850 assets, is on the market with a quoted value exceeding £175 million. Property sales are expected to generate £17 million, with these funds and rental income covering operational costs and the additional lender fee.
This response to Southey's tender offer, which values Home REIT at approximately £32 million, is based on a press release statement from the company. The information provided is intended to give shareholders an updated overview of Home REIT's financial position and the board's stance on the unexpected tender offer.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.