Custodian Property Income’s (CREI) bid for Abrdn Property Income (API) has failed to gain the 75% support of API shares meaning fund manager Abrdn will retain the £300m portfolio in a managed wind-down likely to last about two years.
David MacLellan, chair of CREI, said he was ‘disappointed’ that votes in favour from 60.8% and 61.4% of API shares at yesterday’s court and general meetings were insufficient for the merger to proceed.
API shares dropped 5.9%, or 3.2p, to 51p in early trading and CREI jumped 10%, or 7.7p, to 83p, close to the level before the proposed transaction was unveiled.