The board of the abrdn Latin American Income (ALAI) is set to make a proposal to liquidate the company, which primarily invests in Latin American securities.
Following the completion of the move, the firm will return cash proceeds to its shareholders.
Despite offering appealing prospects in the longer term, the small size of the firm makes it tough to create robust demand for its shares, the ALAI board said.
In a statement, the company said ‘that the discount at which the shares trade to net asset value is likely to persist’.
ALAI added: “The Board has considered the views of its largest shareholder and its professional advisors and, taking into account the composition of the share register as a whole, believes that the Proposals are in the best interests of shareholders.
“The Company will publish a Circular in due course setting out details of the Proposals and to convene an Extraordinary General Meeting at which approval for the Proposals will be sought from shareholders.”
Once approved by the shareholders, ALAI will be placed under summary winding up by the end of May this year, said the firm.
The latest development follows an announcement made by the company last month regarding the sale of abrdn Capital’s subsidiary abrdn Capital International to LGT.
abrdn Capital represents abrdn’s discretionary fund management business in Jersey.