22/02/2026
We're delighted to have helped with the merger of Aberdeen Equity Income Trust (AEI) and Shires Income (SHRS), creating an enlarged investment trust with a net asset value estimated between £289m and £331m.
The deal, expected to complete in March 2026, involves a scheme of reconstruction where Shires shareholders can receive new AEI shares or a 25% capped cash option. The enlarged AEI will be the ongoing entity, with abrdn Fund Managers Limited continuing as investment manager.
Under the proposal, AEI will adopt an updated investment policy incorporating SHRS’ ability to invest in investment-grade fixed income securities, preference shares, and selective overseas equity exposure in developed markets.
AEI’s chair Sarika Patel noted: “Bringing together two high-quality investment trusts with aligned objectives, a shared management team and complementary portfolios, the enlarged company will benefit from greater scale, improved liquidity and lower costs.”
Shires chair Robin Archibald added: “This is a constructive initiative designed to enhance and, most importantly, to try to encourage new investors to support a closed-ended investment company that can provide returns not available from open-ended alternatives by using the benefits of the closed-ended structure, including gearing, allocation of costs and use of reserves.”
We'd like to thank our wonderful clients at both AEI and Shires Income and advisors including JP Morgan Cazenove, Winterfloods and Gowlings.
If you'd like to find out how we can help ensure the success of your most critical corporate actions, chat with us today: hello@blackandcallow.com
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