Paper shortage hits Abrdn's £1.5bn Interactive Investor takeover.


Abrdn’s £1.5bn takeover of Interactive Investor has been delayed because of a paper shortage, it was reported on Monday.

Abrdn

Source: Sharecast

The FTSE 100 fund manager needs to post circulars to all shareholders before a vote can be held on the planned purchase. But it has struggled to secure enough paper to print all the circulars, Sky News and The Times reported.

As a result, the paperwork will now not be sent until this week, around a fortnight later than planned, with the ballot pushed back until the middle of March. Abrdn, which has a vast number of retail investors, had initially hoped to hold the vote before it published its results on 1 March.

A spokesman told The Times: "The combination of Christmas and supply chain issues meant we initially had to look high and low for adequate supply to mail over 1m shareholders."

The pandemic has heavily disrupted global supply chains, with a range of sectors and industries struggling to secure raw materials. Brexit and a shortage of lorry drivers in the UK has further compounded the issue, especially as economies worldwide reopen following the worst of the pandemic and demand picks up again.

Abrdn, formally called Standard Life Aberdeen, was formed in 2017 through the £11bn merger of Standard Life and Aberdeen Asset Management. It changed its name last summer, following the sale of the Standard Life brand to insurer Phoenix Group in February 2021.

The proposed acquisition of Interactive Investor, a stock-picking platform, was announced in December. At the time, chief executive Richard Wilson said the deal would mark "an exciting new chapter in our history". Interactive Investor is controlled by private equity firm JC Flowers.


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