Investor in troubled homeless landlord Home REIT explodes board as ‘out of their depth’ after abrupt turnaround over takeover bid
An investor in troubled homeless landlord Home REIT has labeled its board as “out of their depth” after an abrupt U-turn over a takeover bid.
On Thursday, potential candidate Bluestar Group dropped its pursuit after three months of negotiations, saying it was “deeply disappointed” that the formal offer deadline had not been extended.
It criticized Home REIT’s board for refusing to act on its proposals, saying it had become “frustrated.”
‘Out of their depth’: Potential suitor Bluestar Group gives up the chase after three months of negotiations
After the offer period expired, Home REIT said it believed Bluestar’s proposal was “unlikely to maximize shareholder value” and had abandoned plans to sell.
This infuriated some of Home REIT’s disgruntled investors who have been trapped since the shares were suspended in January over scandals and questions about its business model.
This board does not listen to shareholders. I have spoken to many other investors and none of them have been contacted about this process,” said one shareholder.
“They spent months ‘running a process’. So until now U-turn shows that the board is not well informed and has an advisor who doesn’t seem to care about the process or dealing with shareholders.’
Home REIT is now facing an uncertain future.
The company is in dispute with several major tenants and is also under an internal investigation into allegations of bribery.