(Reuters) – Global Net Lease Inc will acquire Necessity Retail REIT Inc 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)
