The £63 million Abrdn Smaller Companies Income Trust plc — which recently announced a strategic review to include “consideration of a combination of the company’s assets with another suitable investment trust” — said on Tuesday it “has received proposals from a number of investment companies.”
The news came as the trust reported 2022 results showing net asset value total return of -33.2% compared to the Numis Smaller Companies (excluding investment trusts) Index return of -17.9%.
Share price performance of the Abrdn trust for the period was -33.7%.
The fund said: “The board recognises that whilst the company has continued to deliver on its investment objective of providing a high and growing dividend, its small size coupled with a persistent and material discount to net asset value (NAV) has created challenges in liquidity and has prevented the company from growing.
“The company received an unsolicited proposal from another investment trust and the board believes it is in the best interests of shareholders to seek proposals from all potentially interested parties.
“The company has received proposals from a number of investment companies and investment management groups, almost all of which envisage shareholders being offered the option to roll over some or all of their investment into a successor vehicle or to receive cash for some or all of their shareholding through a reconstruction under section 110 of the Insolvency Act.
“The strategic review process is now at a stage where a short list of candidates have been requested to prepare detailed proposals and responses to the board’s specific questions.
“The board will review all the proposals fully and revert to you, as shareholders, with our recommendation as soon as practicable.”