13th Feb 2023 10:57
(Alliance News) - abrdn Smaller Cos Income Trust PLC on Monday said it is undertaking a strategic review to consider the company's value, due to a prolonged shares discount to net asset value.
Shares in abrdn Smaller Cos surged 17% to 288.00 pence each in London on Monday morning, while daily pricing figures on its website estimated NAV per share including income to be 303.50p.
The Edinburgh-based investor focusing on UK small-cap stocks said its have shares have continued to trade at "a material discount to their NAV for a prolonged period of time".
"This, coupled with the company being of a small scale, has created challenges in generating improved liquidity in the company's shares and will also restrict the company's ability to grow over time," said abrdn Smaller Cos in a statement.
This prompted the board on Monday to announce its intention of conducting a strategic review to consider the future of the company, stressing it still believed it remains in a position to generate returns for shareholders.
The strategic review will include considering combining its assets with another investment trust, potentially alongside a cash exit.
abrdn Smaller Cos said it will continue to update shareholders on the progress of the strategic review.
By Greg Rosenvinge, Alliance News reporter
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