Custodian Property Income REIT (CREI) and abrdn Property Income Trust (API) and have reached an agreement on the terms and conditions of an all-share merger, through which CREI will acquire the entire issued and to-be-issued share capital of API.
The companies’ boards believe the merger would bring together two complementary portfolios to create a differentiated REIT with enhanced diversification and share liquidity and a fully covered and sustainable dividend for the combined group’s shareholders.
Shareholders in the combined group are expected to benefit from a substantially larger portfolio with approximately 200 assets and a combined property value of more than £1 billion ($1.3 billion).
Under the terms of the merger, each CREI shareholder will hold 59.7 percent and API shareholders 40.3 percent in the combined group. The deal values the entire issued share capital of API at £237 million ($301 million), representing a premium of 29.4 percent to the clo
