abrdn proposes folding New Dawn into Asia Dragon trust
An up to 25% cash exit opportunity will be offered to investors in abrdn New Dawn, with the price offered at a 2% discount to the trust’s FAV, less the costs of realising the assets allocated to the cash pool.
The proposals would see abrdn New Dawn rolled into Asia Dragon, with the former wound up and the transfer of assets on a formula asset value basis offered in exchange for the issue of new ordinary shares in the latter.
An up to 25% cash exit opportunity will be offered to investors in abrdn New Dawn, with the price offered at a 2% discount to the trust's FAV, less the costs of realising the assets allocated to the cash pool.
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Following the merger, which is expected to become effective in October 2023, with further details published in September 2023, the resulting Asia Dragon trust will be managed by Pruksa Iamthongthong and James Thom.
Investors are expected to benefit from a range of impacts, including greater economies of scale and an enhanced profile as a result of the increased size.
With net assets likely to stand in excess of £700m, abrdn expects the enlarged Asia Dragon trust to qualify for inclusion in the FTSE 250, raising the profile of the vehicle.
A lower tiered management fee will also benefit investors on a cost basis, with the management fee payable by Asia Dragon to abrdn Fund Managers Limited set to reduce from 0.85% to 0.75% on the initial £350m and 0.5% on net assets in excess of £350m.
A continuation vote will remain available to investors, with the next due at the December 2026 AGM, while shareholder approval will also be sought for an investment policy change to allow Asia Dragon to invest in Australasia, offering the managers greater geographic
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