Abrdn Property Income Trust is set to carry out a managed wind-down after failing to gain enough shareholder votes to approve a merger with Custodian Property Income REIT.
The proposed merger with Custodian has been terminated after the number of votes in favour of the takeover fell below the minimum threshold needed to approve the resolution.
The merger gained support of 61% by value of API shareholders voting, equalling around 79% by number. That fell short of the required 75% threshold.
The board said it will now take steps to implement a wind-down, subject to approval from shareholders at a general meeting.
James Clifton-Brown, chair of API, said: “In view of these results and the challenges that API would continue to experience as a stand-alone company, the API board will now take steps to implement a managed wind-down, subject to API shareholder approval, building upon the work already undertaken by the API board and the company’s investment manager and advisers, with the objective of delivering enhanced returns for API shareholders.”
David MacLellan, chairman of CREI, said the board was “disappointed” by the outcome.
“CREI wishes API and its shareholders every success in the future as API continues as an independent business,” he said, adding that the transaction was viewed as “an augmentation” of, rather than critical to, its own strategy.
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