(Sharecast News) – A potential merger between UK Commercial Property REIT (UKCM) and sector peer Picton was on the rocks on Tuesday after being denied by UKCM’s majority shareholder, Phoenix Life.
The news came just a fortnight after UKCM, managed by Abrdn, revealed that it was discussing a potential all-share merger with Picton.
At the time, it said the merger was being considered on an EPRA net tangible assets basis at a common valuation date.
UKCM, the larger of the two entities with net assets of £1bn compared to Picton’s £532m, was set to have the final say in the merger deliberations.
However, it emerged on Tuesday that Phoenix Life, which holds a 43% stake in UKCM, had put the kibosh on the proposed merger.
Picton confirmed the development, with City AM reporting that the company was told by UKCM that “its largest shareholder does not support the possible merger on the terms proposed”.
It said Picton was evaluating feedback from shareholders on the development.
Reporting by Josh White for Sharecast.com.
