Abrdn Di&g Regulatory News (ADIG)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

26 February 2025

For Immediate Release

abrdn Diversified Income and Growth plc

(the "Company")

Update on Managed Wind-Down

In advance of the Company's forthcoming annual general meeting today (the "AGM"), the Board of the Company is pleased to provide an update on the managed wind-down of the Company.

Following shareholder approval of the managed wind-down strategy in February 2024, the Company sold substantially all of its public market assets and returned approximately £115 million to shareholders by way of a B Share Scheme in July 2024 (being approximately 38.1 pence per ordinary share, which represented approximately 35.4 per cent. of the Company's prevailing net asset value at the time). Subsequent to this initial return of capital, the Board and its advisers have continued to explore the available options to conduct an orderly realisation of the Company's remaining assets in a manner that seeks to optimise value whilst progressively returning cash to shareholders. In doing so, the Board has been particularly conscious of the expected timelines for the natural maturity of the two tranches of the Company's private markets portfolio (with the first tranche expected to mature between 2025 and 2027 and the second tranche expected to mature between 2029 and 2033).

In particular, the Board has been considering the opportunities available for secondary sales of private market assets. Although the market for secondary sales of private assets has in general improved recently, liquidity remains very selective and focused on the most attractive sectors. Accordingly, the Board believes there remain challenges in achieving secondary liquidity and attractive pricing for the Company's less liquid investments.

However, the Board confirms that it is in early-stage discussions, on an exclusive and confidential basis, with a third party regarding a potential transaction in relation to all or substantially all of the remaining portfolio. This third party is currently undertaking a due diligence exercise in respect of the portfolio and the Board will provide further updates, as appropriate, in due course. At present, there is no guarantee that the terms of any proposal would be sufficiently attractive to merit a Board recommendation or that such discussions will lead to definitive agreements for such a transaction.

The terms of any proposed transaction would need to be assessed against the likely return to shareholders that could be delivered through the other strategic options available to the Company. This assessment would take into account, among other things, the quantum delivered to shareholders (on a net present value basis), timing and relative certainty of execution. The Board, together with its advisers, therefore continues to consider each of these alternative options alongside the aforementioned third-party discussions.

For further information, please contact:

abrdn Diversified Income and Growth plc

Davina Walter (Chairman) via Burson Buchanan

Dickson Minto Advisers

Douglas Armstrong / Andrew Clark / Jamie Seedhouse +44 (0)20 7649 6823

Burson Buchanan

Helen Tarbet / Henry Wilson +44 (0)20 7466 5000

Verity Parker / Samuel Adams ADIG@buchanancomms.co.uk

Important information

This announcement is released by the Company and the information contained within this announcement is deemed by the Company to constitute inside information for the purposes of Article 7 of the UK version of the EU Market Abuse Regulation (Regulation (EU) No.596/2014) which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement via a Regulatory Information Service, such information is now considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is abrdn Holdings Limited, the Company Secretary.

The Company's LEI number is 2138003QINEGCHYGW702.