Phoenix Life Limited, the majority shareholder of UK Commercial Property REIT (UKCM) has torpedoed the company’s potential merger with peer Picton.
UKCM, which is run by Abrdn, announced it was in discussions with Picton two weeks ago. The companies said they were looking at a “possible all-share merger”, on a “EPRA NTA for EPRA NTA basis at a common valuation date”.
As the larger of the two, with net assets of around £1bn, UKCM (compared to £532m for Picton) always had the last word in discussions.
However, it now looks as if UKCM’s largest shareholder, Phoenix Life, which controls 43 per cent of the company’s shares, has scuppered the deal.
Picton said this morning it had been informed by UKCM, “that its largest shareholder… does not support the possible merger on the terms proposed”.
The company is now going to consider the “feedback that it has received from shareholders” and a “further announcement will be made in due course”.
Shares in Picton opened flat, while shares in UKCM fell 2.2 per cent.