Global Net Lease to buy Necessity Retail in $950 mln all-stock deal (updated)

Necessity Retail REIT

24/05/2023 03:34

(Adds details on merger deal throughout, background on proxy
battle)
       May 23 (Reuters) - Global Net Lease Inc  GNL.N  will
acquire Necessity Retail REIT Inc  RTL.O  in an all-stock deal
that would value the combined entity at about $950 million, the
companies said late on Tuesday.
    The shareholders of Necessity Retail REIT would receive
0.670 shares of Global Net Lease (GNL) for each Necessity share
held, representing a total of $7.08 per share, the two REITs
said in a joint statement.
    GNL's shares had closed at $10.56 on Tuesday.
    The combined company will operate as GNL and its current CEO
James Nelson and current Necessity Retail REIT's CEO Michael
Weil will become co-chief executive officers. 
    Weil will be the sole CEO after Nelson's retirement in April
2024, the statement added.
        Earlier this month, proxy advisory firms ISS and Glass
Lewis had urged shareholders of both the REITs to withhold
support from several incumbent directors, amid a battle with
hedge fund Blackwells Capital.

 (Reporting by Anirudh Saligrama in Bengaluru; Editing by
Subhranshu Sahu and Shailesh Kuber)
 ((Anirudh.Saligrama@thomsonreuters.com; @journoanirudh on
Twitter;))