UK Commercial Property REIT (LSE:UKCM) (UKCM) has walked away from merger talks with Picton Property Income Limited after it faced pressure from its largest shareholder.
The investment trust, which is managed by Abrdn PLC (LSE:ABDN), confirmed speculation earlier this month that it was having discussions with Picton about a possible all-share combination on an EPTA NTA-for-NTA basis, referring to the European Public Real Estate Association's measure of net tangible assets.
Picton stated that under the terms of the proposal deal, the merged company would be "internally managed", as Picton is.
But today, UKCM said its largest shareholder said "it does not support the possible merger on the terms proposed" and so the talks have been ended.
Phoenix Life, part of Phoenix Group Holdings PLC (LSE:PHNX), is the largest shareholder in UKCM, with a stake of roughly 43%.