(Alliance News) - GCP Asset Backed Income Fund Ltd on Wednesday announced a strategic review, with options including but not limited to being acquired or wound down.

Shares in GCP Asset were up 6.1% at 63.42 pence on Wednesday morning in London.

The London-based investor, which backs medium to long-term fixed or floating rate loans secured against physical assets or cash flows, said the strategic review follows the cessation of merger discussions with GCP Infrastructure Investments Ltd.

The two companies ended combination talks in mid-September, due to opposition from a "significant minority" of GCP Asset or GABI shareholders. At the same time, GABI said it would propose a continuation vote at its annual general meeting in May next year.

Then in October, GCP Asset Backed received a non-binding takeover proposal from an unnamed US-listed investment company. However, the possible offeror withdrew its proposal on Monday before GABI could provide it access to confirmatory due diligence.

GABI on Wednesday said it was mindful of the importance to many shareholders of market liquidity, the discount at which its stock has traded and its limited scope for growth in the current environment.

GCP Asset said it will consider all options for its future, including undertaking a consolidation, merger or similar; selling its entire share capital or all its assets; continuation alongside potential cash exit opportunities for shareholders; and "an orderly wind-down".

GCP Asset said it will seek shareholder feedback to inform the decision-making process, contacting key shareholders in early January.

By Emma Curzon, Alliance News reporter

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