Asia Dragon assets swell by over £200m following abrdn New Dawn merger
This puts the trust's total assets at £736.4m, as pre-merger it held £494.7m, according to data from the Association of Investment Companies.
This puts DGN's total assets at £736.4m, as pre-merger it held £494.7m, according to data from the Association of Investment Companies.
The merger of the two abrdn trusts was first proposed in July and today (8 November), shareholders in ABD formally approved the combination of assets.
Asia Dragon shareholders greenlight abrdn New Dawn merger
DGN announced that 52,895,670 new shares will be issued to ABD shareholders, in accordance with the scheme. Shares of the fully combined portfolio are expected to begin trading tomorrow (9 November) at 9am.
abrdn New Dawn investors were offered an up to 25% cash exit opportunity, with the price offered at a 2% discount to the trust's formula asset value (FAV), less the costs of realising the assets allocated to the cash pool.
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.
abrdn proposes folding New Dawn into Asia Dragon trust
Following the merger, a lower tiered management fee will also benefit investors on a cost basis, with the management fee payable by Asia Dragon to abrdn set to reduce from 0.85% to 0.75% on the initial £350m and 0.5% on net assets in excess of £350m.
In a meeting on 25 October, Asia Dragon shareholders approved the adoption of a new investment policy to allow Asia Dragon to invest in Australasia, offering the managers greater geographic flexibility.
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