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The shareholder vote on the £1.5bn acquisition of Interactive Investor, the UK’s leading subscription-based direct investing platform, by Abrdn was delayed after a global paper shortage meant that Abrdn could not distribute its shareholder circular.

On 2 December 2021, Abrdn that it had agreed to acquire Interactive Investor, the leading subscription-based, digitally-enabled, direct investing platform in the UK, for £1.5bn in cash. Abrdn believes the acquisition is a material step towards the group building a leadership position in the personal wealth market. Commenting on the ‘game-changing’ acquisition, Stephen Bird, CEO of Abrdn plc :

‘This is a unique opportunity and a transformative step in delivering our growth strategy. Interactive Investor is the UK's number one subscription-based investing platform with a powerful reputation as a consumer champion. Abrdn's scale, resources, and shared vision will enable interactive investor to grow confidently and expand its leadership position in the UK's attractive savings and wealth market.’

The shareholder vote to approve the acquisition was originally due to take place prior to the company announcing the financial results for the full year ended 31 December 2021, which will be announced on 1 March 2022. However, supply chain issues leading to an international paper shortage, meant that the information relating to the acquisition could not be sent to shareholders in time.

The acquisition of Interactive Investor constitutes a class 1 transaction under the Financial Conduct Authority (FCA) Listing Rules due to the size of Abrdn. As a class 1 transaction is likely to have a material impact on the listed company because of its size, the Listing Rules provide some protection for shareholders by ensuring they are able to consider and vote on the transaction before it is entered into. The class 1 requirements provide that the listed company must, among other things, send an explanatory circular to shareholders and obtain the approval of shareholders through a vote at the general meeting (for more information, see Practice Note: (a subscription to Lexis®PSL Corporate is required)). The information relating to the Interactive Investor transaction spans 120 pages which Abrdn was required to distribute to its 1.1m shareholders in order to proceed with the transaction. However, due to a global paper shortage caused by supply chain problems, Abrdn was forced to delay the posting of its circular and its general meeting as a result. 

On 9 February 2022, Abrdn finally the publication and posting of the and notice of general meeting. The shareholder vote on the £1.5bn transaction is now due to take place on 15 March 2022, weeks after it was originally planned.

The delay highlights how disruptions in global supply chains can cause unexpected consequences for corporates. Other companies are also expected to be hit, especially as we approach AGM season during which we are expected to see a large number of proxy votes.

Further information on the Abrdn plc Class 1 transaction can be found in our Market Tracker transaction database, which contains information on over 7,600 public company transactions.