(Alliance News) - UK Commercial Property REIT Ltd on Tuesday said its largest shareholder does not support a possible merger with Picton Property Income Ltd, and it has consequently terminated discussions with Picton.
UK Commercial Property had confirmed it was in discussions with Picton about a potential all-share merger earlier this month, but noted there would be no certainty of any offer being made.
FTSE 250-listed UK Commercial Property is managed by abrdn PLC.
Picton on Tuesday noted the announcement, naming Phoenix Life Ltd as the shareholder in question, with a holding of around 43% in UK Commercial Property. Phoenix does not support the deal "on the terms proposed", both companies said.
Picton said it was considering feedback from shareholders it has received since talks of the merger were confirmed, and will make a further announcement in due course.
Shares in UK Commercial Property were down 1.2% at 57.79 pence each in London on Tuesday morning, while Picton rose 0.3% to 68.00 pence.
By Elizabeth Winter, Alliance News deputy news editor
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UK Commercial Property Trust (UKCM)
Picton Prop (PCTN)