Abrdn Property rejects Urban’s approach, opts for ‘compelling’ Custodian merger

Abrdn Property Income (API) has rejected Urban Logistics’ (SHED) offer of an all-share merger and stuck by its recommendation for a ‘compelling’ combination with Custodian Real Estate Income (CREI).

However, in a change, the board of API said if the all-share merger with fellow property generalist Custodian does not win approval from both trusts’ shareholders, it will consider a managed wind-down of its assets believing that is now a ‘more viable’ option as a result of improving market conditions.

The Takeover Panel has given Urban Logistics, ‘last mile’ distribution specialist,  another extension to next Wednesday 20 March to confirm its intentions, while API delays its shareholder meeting by one week until 27 March. Custodian shareholders will vote on the proposed merger on Tuesday 19 March.