Glenstone seizes control of Alternative Income REIT at 70p a share

What's the deal? Glenstone REITDealroom has a profile for this one. Try Dealroom → said its hostile takeover of Alternative Income REITDealroom has a profile for this one. Try Dealroom → became unconditional on Wednesday after securing more than 50% of voting rights. Its final cash offer values Alternative Income REIT shares at 70.0 pence each, adjusted for a 1.4p dividend declared in July.

The numbers: As of 1500 BST Tuesday, Glenstone could count 40.6 million shares — about 50.4% of Alternative Income REIT's issued capital — including its own holdings and valid acceptances. That satisfied the acceptance condition and triggered the waiver of all remaining conditions.

Why now? The target's board still argues the offer undervalues the business, noting the 70.0p price is a roughly 17% discount to its unaudited net asset value of 84.4p at March 31. But it now recommends shareholders accept, saying Glenstone's control "materially changed" the position for remaining investors.

What's the endgame? If Glenstone stays below 100%, it plans a managed wind-down, selling assets and returning cash within three years. At 75% it intends to cancel the London listing; at 90% it can compulsorily buy out remaining holders.

What could go wrong? The board warned holdouts could face reduced liquidity, board and strategy changes, and a possible delisting. No rival bid is on the table after a previously considered proposal from AEW UK REITDealroom has a profile for this one. Try Dealroom → never firmed up.

The signal: The deal shows how a hostile bidder can force a board's hand once it crosses the majority threshold — turning a disputed valuation into a fait accompli. With minority shareholders left weighing cash certainty against illiquidity, Glenstone's grip on Alternative Income REIT looks set to tighten toward a full takeout.

Image credit: seishin17