Picton Property Income merger off after major shareholder rejects deal

Trust’s board was in talks with UK Commercial Property Reit over a potential combination

Photo by Maria Ziegler on Unsplash

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Picton Property Income’s merger with the £746m UK Commercial Property Reit will not go ahead after its largest shareholder, Phoenix Life, did not support the takeover.

Phoenix owns approximately 43% of Picton’s share capital.

Without its support, Picton’s board announced it does not intend to make an offer for the trust.

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Picton’s board had announced that they were in discussions over a potential all-share merger with UK Commercial Property Reit on 8 November.

In a stock exchange announcement this morning (5 December), the board said it continues to believe that there are “strategic and financial benefits” to combining to “enhance scale, diversification and efficiency” within an internal management structure.

UK Commercial Property Reit is currently trading at a 28.58% discount to NAV, according to AIC data.

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