Ground Rents Income Rejects Latest Victoria Property Acquisition Proposal

Ground Rents Income Fund (LON: GRIO) said Friday that it has rejected an improved takeover proposal from Victoria Property Holdings, a subsidiary of Martin Property Group, stating that the offer “materially undervalues the company.”

Victoria Property submitted its latest non-binding indicative cash offer on 29 January, raising its bid to 37.5 pence per share—an increase of 10.3% from its prior 34 pence offer announced on 8 January. 

This marks the fourth proposal Victoria Property has made, with its initial proposal standing at 31 pence per share.

After reviewing the latest proposal with its financial and legal advisers, GRIO’s board unanimously rejected the offer, citing shareholder feedback and the company's inherent value. 

“The board has concluded that the Latest Proposal remains unattractive and materially undervalues the company and that it cannot recommend the Latest Proposal to GRIO shareholders,” the company stated.

Victoria Property also requested an extension to the Put Up or Shut Up (PUSU) deadline and access to due diligence information. 

However, GRIO responded that sufficient information on its business and financials is already publicly available, and it expects Victoria Property to submit a firm offer within the 28-day period set by the UK Takeover Code.

Victoria Property has until 5 p.m. on 5 February to make a formal offer or withdraw. Any extension would require GRIO's approval and consent from the UK Takeover Panel.