Abrdn Euro Log Regulatory News (ASLI)

abrdn European Logistics Income plc

2 April 2025

LEI: 213800I9IYIKKNRT3G50

B Share Scheme Apportionment Ratio

Further to the Company announcement dated 27 February 2025, abrdn European Logistics Income plc (the "Company") confirms the apportionment ratio in relation to the initial B share issue and the associated book cost. The Circular issued in relation to the B Share Scheme issued on 6 November 2024 may be found on the Company's website at: www.eurologisticsincome.co.uk in which Part 5 related to United Kingdom taxation.

Pursuant to the authority received from Shareholders at the general meeting held on 22 November 2024, the Board resolved to return approximately £16.5 million in aggregate to Shareholders via an issue of B Shares. On 7 March 2025 1,648,697,424 B Shares of one penny each were paid up from the Company's special distributable reserve and issued to all Shareholders by way of a bonus issue on the basis of 4 B Shares for every 1 Ordinary Share held at the Record Date of 6.00 p.m. on 6 March 2025.

The B Shares were immediately redeemed at their nominal value of one penny per B Share with a Redemption Date of 7 March 2025. The proceeds from the redemption of the B Shares, which is equivalent to 4 pence per Ordinary Share, were sent to uncertificated Shareholders through CREST with cheques posted to certificated Shareholders on 20 March 2025. Shareholders should note that no certificates were issued in respect of the B Shares.

For the purposes of United Kingdom taxation of capital gains and corporation tax on chargeable gains ("Capital Gains Tax"), the issue of B Shares constitutes a reorganisation of the share capital of the Company. Accordingly, the B Shares are treated as the same asset as a shareholder's holding of existing Ordinary shares, and as having been acquired at the same time as a shareholder's holding of existing Ordinary shares. A shareholder's combined holding of Ordinary shares and B shares has the same aggregate base cost as the shareholder's holding of Ordinary shares immediately before the issue of B shares. The aggregate base cost should be apportioned between B shares and the Ordinary shares held by a Shareholder by reference to the market values of the Ordinary shares and the B shares on the first day of trading after the issue of B shares.

Due to the terms on which the B Shares were issued and subsequently redeemed, and as they were unlisted and non-transferable, their market value has been assessed, below, as equal to their nominal value of one penny on 7 March 2025. The market value of the Ordinary shares is calculated with reference to their market value on the first day of trading after the issue of the B shares, which is considered to be 7 March 2025.

Accordingly, the aggregate base cost of the Ordinary shares which should be apportioned against the B Shares redemption proceeds, received by Shareholders on 20 March 2025 is 6.7%, calculated as follows:

* The lower of the two prices for an Ordinary share shown in the London Stock Exchange Daily Official List for 7 March 2025 as the closing price for an Ordinary share on that day plus one-half of the difference between those two figures in accordance with SI 2015/616.

United Kingdom taxation

The information above does not constitute tax advice and is intended only as a guide to United Kingdom law and HMRC published practice (which are both subject to change at any time, possibly with retrospective effect). It relates only to certain limited aspects of the United Kingdom taxation treatment of shareholders and is intended to apply only to shareholders who are resident in the United Kingdom for United Kingdom tax purposes and who are, and were the absolute beneficial owners of their Ordinary shares and B Shares and who hold, or held, them as investments (and not as securities to be realised in the course of a trade) other than under an ISA. The information above may not apply to certain shareholders, such as, but not limited to, dealers in securities, insurance companies, collective investment schemes and shareholders who are exempt from taxation. The position may be different for future transactions.

Shareholders who are in any doubt as to their tax position or who are subject to tax in a jurisdiction other than the United Kingdom should consult an appropriate professional adviser.