Shares of abrdn European Logistics Income (LSE: ASLI) rose over 10% Monday after the £573 million property fund announced a strategic review that could end in a sale ahead of a pivotal investor vote in mid-2024.
The UK-listed company, which owns logistic assets serving Europe’s booming e-commerce industry, said its small size “which might deter some potential investors due to lower share liquidity and a higher relative cost base.”
It added: “The company’s shares have continued to trade at a significant and persistent discount to net asset value per share, which the board and investment manager believe does not reflect the long-term prospects of the portfolio.”
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Launched in late 2017 to capitalise on the online shopping boom, abrdn European Logistics has faced challenges recently, missing its dividend target and achieving a market value of just £234 million.
The strategic review aims to address the valuation gap and enhance shareholder value, the company stated, considering options like a merger or asset sales.
An update will be provided alongside the 2023 results. Any structural changes would need investor approval at the upcoming annual general meeting.
