QD INSIGHTS & OPINION
Matthew Read on AIRE: “While Glenstone’s opposition and significant shareholding in AIRE makes it harder for AEWU to complete a deal, this does not make Glenstone’s offer attractive. As AIRE’s board point out, once the expected fourth interim dividend is taken into account, the effective value falls to 70p, which is a sizeable discount to NAV and offering little premium for control. At this stage, we think AIRE shareholders should sit tight and see whether AEWU converts its interest into a firm offer. Its proposed all-share terms currently imply a meaningfully higher value and would allow investors to retain exposure to a liquid, income-producing REIT with a strong track record. Of course, there is no guarantee that an offer will emerge, but shareholders lose little by waiting for greater clarity and we’re inclined to agree with AIRE’s board that Glenstone’s bid is coming at too wide a discount.”