abrdn European Logistics Income (ASLI) has announced that it will undergo a managed wind down.
Ahead of a continuation vote this year, the board launched the strategic review into the future of the company in November 2023, with the fund suffering from a wide discount to NAV and a materially uncovered dividend.
The company received 11 indicative proposals in the first quarter of 2024 and a smaller number of offers, while the company’s investment manager, abrdn Fund Managers Limited, provided a proposal involving a managed disposal of the portfolio over a period of 12-24 months, with capital being returned to shareholders from the fourth quarter of 2024 and expected quarterly thereafter.
The board has concluded that it would be in the best interests of shareholders to put forward a proposal for a managed wind down of the company. It said the potential value from the managed wind down is materially in excess of the net value achievable from the indicative cash offers received, all of which represented material discounts to the company’s current net asset value.
It added that the majority of interested parties communicated a strong preference to acquire assets within certain geographies or individual assets as an alternative to acquiring the entire portfolio, which the board said provided comfort as to the likely level of investor interest in the managed wind down process.
As part of the proposed managed wind down, it is expected that the majority of assets will be disposed of by the end of the second quarter of 2025.
The company has proposed a continuation vote at the forthcoming Annual General Meeting (AGM) on 24 June 2024. The board recommends that shareholders vote against the Continuation Vote resolution.
Tony Roper, chairman, abrdn European Logistics Income, commented: “The Board undertook the Strategic Review to enable it to comprehensively evaluate all options for Shareholders, with strong interest shown in the Company. Despite retaining a high conviction in the logistics asset class and investment strategy, given the challenges facing both the Company and the broader investment trust sector, the Board has concluded that a Managed Wind-Down in a timely manner is the optimal route to maximise Shareholder value in the short to medium term. The Board thanks Shareholders for their engagement and feedback throughout this process.”