The Board of abrdn Diversified Income And Growth Plc (LSE:ADIG) announced the outcome of the strategic review process that commenced on 20 June 2023. The strategic review sought to address the material discount to net asset value ("NAV") at which the Company's shares have traded and consider how best to deliver value to shareholders. Following careful consideration of the options available to the Company, including asset sales and discussions with third parties, the Board has determined that it is in the best interests of its shareholders to continue the Company's existing investment strategy and to return optimal value by means of enhanced distributions, comprising realised gains and surplus available cash, through a combination of special dividends and a tender offer (the "Enhanced Distribution Programme").

The Enhanced Distribution Programme is expected to return between £30 million and £35 million to shareholders by the end of 2024 and further enhanced returns of value, including special dividends, are envisaged during 2025 and 2026 as a substantial part of the Company's private markets portfolio matures. Having considered a number of potential options under the strategic review, the Company continues to be committed to offering shareholders an attractive and differentiated investment proposition characterised by a genuinely diversified portfolio which provides access to a wide selection of asset classes, an attractive level of dependable income and defensive characteristics relative to the volatility of equity markets. Outcome of the strategic review: As noted at the outset of the strategic review, the Board has been encouraged that, in exceptionally volatile markets, Nalaka De Silva and the Company's wider investment team have continued to deliver steady performance under the Company's investment strategy adopted in 2020.

However, despite this, the Company's shares have continued to trade at a material and persistent discount to their NAV and, accordingly, the Board announced on 20 June 2023 that it was commencing a strategic review to consider how the Company can best deliver value to shareholders. Having consulted with abrdn Investments Limited (the "Investment Manager" or "abrdn") and taken third party advice regarding the market for secondary fund interests, the Board concluded that the early disposal of private market investments in current market conditions would necessitate a substantial discount to their long term realisable values, and thereby limit the value that could be achieved for shareholders. Accordingly, the Board has sought to avoid an outcome of the strategic review that would require material realisations of private market investments in the current market environment.

The Company received a number of proposals in response to the strategic review and, in particular, was engaged in discussions regarding potential combinations with other investment trusts that the Board believed could achieve the aims of the strategic review. Whilst these discussions were encouraging, the Board ultimately concluded that none of the third party proposals put forward would optimise shareholder value at this time, and determined that shareholder interests would be better served over the near to medium term by realising value from the Company's existing investment strategy and portfolio.