LONDON (Alliance News) - Aberdeen UK Tracker Trust PLC said Monday it will offer more shareholders the possibility of a cash exit, as it prepares to merge with Aberdeen Diversified Income & Growth Trust PLC.
Aberdeen UK Tracker Trust said 60% of its shares will be eligible for a cash exit in its reconstruction, up from the originally announced 40%. The remainder of the shares in trust will be exchanged for shares in the Diversified Income trust.
The merger of the two trusts was announced in November, with the cash exit sum for Aberdeen UK Tracker Trust shareholders set at a 2.75% discount to the net asset value of the trust. Subject to shareholder approval, the merger is expected to become effective in early April.
Shares in Aberdeen UK Tracker Trust were up 2.1% at 341.50 pence Monday morning.
In a separate statement, the Aberdeen Diversified Income & Growth Trust said it will adopt a discount control mechanism to maintain its share price discount to net asset value at no wider than 5%, via share repurchases.
The Aberdeen Diversified Income & Growth Trust was previously the BlackRock Income Strategies Trust, before the board of the trust served notice on BlackRock, citing negative absolute returns and an unsustainable dividend.
Shares in Aberdeen Diversified Income and Growth were down 0.7% at 113.20p Monday morning.
By Adam Clark; adamclark@alliancenews.com
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Abrdn Di&g (ADIG)