Walls & Futures REIT PLC to offer winding-up alternative to Virgata bid

Walls& Futures () has said it will give shareholders a vote on whether to wind the business up if they turn down the takeover offer from Virgata.

In a formal response to the 50p per share Virgata offer, the board of the specialist social housing (SSH) group again rejected the bid and said compared to a net asset value of 102p per share it significantly undervalued the business.

The REIT’s property assets are worth £3.2mln on the open market, it added, compared to the £1.2mln implied by the offer.

WAFR said it had also rejected a proposed £2mln injection from Virgata because it would have significantly diluted the stake of existing shareholders.

The trust said its board acknowledges that Walls & Futures shares are trading at a significant discount to NAV and it has been working on strategies and mechanisms to close the discount, which might include a winding-up if shareholders want it.

“Whilst the Walls & Futures Directors believe that the future prospects for the company are strong and are best served by remaining as a REIT on the AQSE Growth Market, they intend to put a winding-up resolution to shareholders at the Company’s 2022 annual general meeting” if the gap between the share price and NAV has not substantially narrowed, said the document.

Walls & Futures added the directors consider that the value receivable by shareholders in the event of a solvent winding up of the company would be substantially higher than the Virgata offer. 

Going forward, the trust said it will focus on autism, which it says is an area where it could apply its experience of delivering high quality, design-led, specially adapted homes.

To this end, WAFR said it had agreed on lease terms and signed memorandums of understanding with new partners covering the North East, South West and the South East.

These memorandums set out the framework for the provision of SSH, which will be let to its partners on long term leases.

Investors should take no offer in relation to the Virgata offer, concluded the document.