(Alliance News) - Abrdn Property Income Trust Ltd on Thursday provided an update on the proposed all-share merger with Custodian Property Income REIT PLC.
In the update the board reaffirmed its recommendation to shareholders to vote in favour of the merger as it represents the "best outcome."
In January, the two real estate investment trusts agreed to the terms of an all-share merger, which would create a trust with combined assets totalling GBP1.0 billion.
However, in recent months the company has also considered an all-share offer from Urban Logistics REIT PLC and pursued the possibility of a managed wind down.
Despite these alternatives the board and its advisors "unanimously" believe CREI's proposition possesses the most "compelling strategic and financial rationale," and have subsequently decided to urge shareholders to vote accordingly at the upcoming general meeting on March 27. They did however confirm that if the merger with CREI fails to come to fruition it will enact the wind down viewing it to be the "less attractive option."
API Chair James Clifton-Brown said: "Having completed its comprehensive assessment, the API Board continues to believe that the CREI Merger represents a strategically consistent and significant enhancement to the status quo for API Shareholders. The CREI Merger offers continued exposure to a diversified, income-focused strategy as well as the growth prospects of the enlarged portfolio."
Shares in API were up 1.0% to 55.60 pence, while CREI was down 2.6% to 75.50 pence in London on Thursday afternoon.
By Elijah Dale, Alliance News reporter
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Abrdn Property (API)
Cust Prop Inc (CREI)
Urban Logistics (SHED)