Home Reit further extends deadline for Bluestar bid

Investment firm had until 5pm today (13 April) to make an official offer

Home Reit has granted Bluestar Group a further deadline extension as the two parties remain in talks over a possible takeover of the investment trust.

The embattled social housing provider first received an unsolicited takeover approach from Bluestar on 16 February, with the firm being given a month to make an official bid or to walk away.

An initial extension was granted until today (13 April), but Bluestar now has until 5pm on 11 May to firm up its interest.

In an announcement to the stock exchange, Home Reit said: “Shareholders should note that there can be no certainty that an offer will ultimately be made for the company, nor as to the terms on which any firm offer might be made. A further statement will be made as and when appropriate.”

The trust has also received proposals from six candidates, including RM Funds, to take over as the firm’s investment adviser, with the board expecting to make an appointment “in the coming weeks”.

Home Reit was one of the largest investment trust initial public offerings (IPO) of 2020, raising £240m.

However, uncertainty over the trust’s future has intensified following a series of issues in recent months, including the collapse of its rent roll, delayed annual results leading to de-listing from FTSE indexes, and accusations from shareholders over its adherence to its investment policy.

See also: Scottish Mortgage bust-up and Home Reit troubles strike a sharp contrast with open-ended funds

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