By Elliot Gulliver-Needham
Urban Logistics REIT has called for Abrdn Property Income Trust to consider adopting its takeover proposal, despite being turned down by the trust’s board last week.
In a stock exchange notice today, Urban Logistics urged Abrdn Property’s board to “call a halt” to the takeover bid from Custodian Property Income REIT and focus on the proposal from it despite not having announced a firm intention to make an offer.
Last week, the Abrdn trust confirmed that it would be recommending to shareholders that they vote in favour of a merger with Custodian, as it had originally planned to before a second offer was made.
While Abrdn Property had welcomed Urban Logistics’ bid, it chose to recommend Custodian’s “compelling strategic and financial rationale.”
However, Urban Logistics has consistently argued that Abrdn shareholders should pursue a merger with it due to its focus on retail warehousing, with the sector becoming increasingly attractive for property investors.
Furthermore, the offer from Urban Logistics put forward today would see a mixture of shares and cash, which it said was being called for by shareholders.
The indicative offer would see the Abrdn portfolio split into two parts. Two-thirds of the portfolio, consisting of logistics and retail warehouses, would join Urban Logistics.
Meanwhile, the other third of the portfolio would remain in the Abrdn trust as it was sold off and cash was returned to shareholders.
The retail warehouse portion of the portfolio was valued at 51.5p per Abrdn Property share, but shareholders would only receive 35.8p per share based on the discounted share price of Urban Logistics.
Meanwhile, the section of the portfolio sold off equates to 26.5p per share before any deduction relating to transaction costs.
Under the UK takeover code, Urban Logistics must announce a firm intention to make an offer or announce it does not intend to make an offer by 20 March.
