Abrdn European Logistics Income is set to wind down as its board reaches the end of a strategic review.
In a stock exchange update, the company said it has now wrapped up the Investec-led review launched last year and has ended a formal sales process, having received proposals for mergers, investment management changes and asset deals from 11 parties.
A “limited number” of indicative offers were then revised.
“Following a detailed review of the options available to the company and after consultation with its advisers, as well as taking into account feedback received from a number of larger shareholders, the board has concluded that it would be in the best interests of shareholders as a whole to put forward a proposal for a managed wind-down of the company,” Abrdn said.
The fund said the review had looked at “a number of challenges” its business faces “at both a macro and company-specific level”.
These included a “materially uncovered” annual target dividend of 5.64 cents per share, a market capitalisation of £234m and low share liquidity, and “a significant and persistent” share price discount to net asset value per share.
The company added that a wind-down should realise “materially” more value than the indicative cash offers. The team expects most assets now to be sold by the mid-point of 2025.
Chairman Tony Roper said: “The board undertook the strategic review to enable it to comprehensively evaluate all options for shareholders, with strong interest shown in the company.
“Despite retaining a high conviction in the logistics asset class and investment strategy, given the challenges facing both the company and the broader investment trust sector, the board has concluded that a managed wind-down in a timely manner is the optimal route to maximise shareholder value in the short to medium term.”
Photo © Andy Wong/AP/Shutterstock
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