abrdn European Logistics Income launches strategic review
The trust has suffered from a double-digit discount for over a year and fell to a new low of 47.1% last month, according to data from the Association of Investment Companies. It currently sits at a 39.7% discount.
The trust, which launched six years ago, said in a stock exchange notice today (27 November) that a combination of its high discount and small size had pushed it to consider all options, including pursuing a consolidation, merger, or sale of the trust and its assets.
«The company remains of a size which might deter some potential investors due to lower share liquidity and a higher relative cost base,» it explained.
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Additionally, the trust's annual target dividend of 5.64 cents (€) per share remains «materially uncovered», it warned, adding that a target reduction would be required «to achieve a fully covered, sustainable dividend in the foreseeable future».
The trust has suffered from a double-digit discount for over a year and fell to a new low of 47.1% last month, according to data from the Association of Investment Companies. It is currently trading at a 39.7% discount.
The timing of the strategic review comes as the trust is required to hold a continuation vote at its annual general meeting in June 2024.
«With that in mind, and cognisant of the feedback received from a number of shareholders in recent meetings, the board believes that the current point in time represents an appropriate juncture at which to consider more fully the basis on which the company might best proceed,» it said.
Despite the prospect of a sale or merger, it stressed there was «no certainty» that any changes will result from the review, and a continuation of the
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