Alternative Income REIT plc (AIRE) said Tuesday its board now recommends shareholders accept Glenstone REIT plc's cash offer of 70.0 pence per share, marking a reversal of the independent director's prior opposition.
The offer represents a discount of approximately 17% to AIRE's unaudited net asset value of 84.4 pence per share as of March 31, 2026. Despite the recommendation, the AIRE board maintained that the 70-pence price undervalues the company.
Shore Capital advised the AIRE board on the financial terms of the transaction. The board's shift followed Glenstone obtaining voting control and the offer becoming unconditional in all respects, according to the company.
Glenstone had previously published its offer document on July 6, 2026, after AEW UK REIT plc had earlier considered a proposal that did not result in a firm offer.
Under City Code rules, the offer must remain open for at least 14 days. Glenstone stated it would keep the bid open until further notice, providing at least 14 days' notice before closing.
If Glenstone acquires less than 100%, it said it would implement a managed wind-down involving asset realization and progressive cash returns to shareholders, with the process projected to complete within three years depending on market conditions.
Glenstone also outlined governance changes it intends to make: appointing two executive directors to the AIRE board, internalizing management, and terminating certain service-provider arrangements. Should it acquire 75% or more of the voting rights, Glenstone plans to cancel AIRE's listing and seek admission to The International Stock Exchange.
Stephanie Eastment, an independent AIRE director, said she intends to accept the offer for her 55,000 shares, representing 0.07% of issued share capital.
