API board rejects Urban Logistics merger bid
Abrdn Property Income Trust’s board has rebuffed Urban Logistics’ proposed all-share offer, maintaining that Custodian Property Income REIT’s takeover bid is the “best outcome” for the business.
The board at API said it also considered a managed wind-down of the business as a “less attractive” option for its shareholders than a merger with Custodian.
However, it said it would pursue that option if Custodian’s bid does not gain approval from the majority of its shareholders when the vote is held, which has been pushed back to 27 March.
Abrdn Property Income Trust’s board has rebuffed Urban Logistics’ proposed all-share offer, maintaining that Custodian Property Income REIT’s takeover bid is the “best outcome” for the business.
The board at API said it also considered a managed wind-down of the business as a “less attractive” option for its shareholders than a merger with Custodian.
However, it said it would pursue that option if Custodian’s bid does not gain approval from the majority of its shareholders when the vote is held, which has been pushed back to 27 March.
The news comes after Custodian sweetened its offer to win shareholder support for its proposal, which included waiving a one-off project fee and management fees.
James Clifton-Brown, chair of API, said: “The API board has reviewed in detail the options available to API in the interests of all shareholders, including the competing merger proposals from CREI and Urban Logistics as well as a potential managed wind-down.
“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.”
He added: “The CREI merger offers continued exposure to a diversified, income-focused strategy as well as the growth prospects of the enlarged portfolio. Furthermore, the CREI merger represents a premium to API’s undisturbed share price and brings an increase in dividends, full dividend cover and enhanced scale and liquidity for API shareholders.
“Accordingly, the API board unanimously reaffirms its recommendation that API Shareholders vote in favour of the CREI merger at the shareholder meetings which will now be held on 27 March.”
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