Asia Dragon shareholders greenlight abrdn New Dawn merger
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.
The proposals will 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.
In a meeting yesterday (25 October), shareholders also approved the adoption of a new investment policy to allow Asia Dragon to invest in Australasia, offering the managers greater geographic flexibility.
According to the Association of Investment Companies, Asia Dragon currently holds £500m in assets, while abrdn New Dawn holds £315m.
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 formula asset value (FAV), less the costs of realising the assets allocated to the cash pool.
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 set to reduce from 0.85% to 0.75% on the initial £350m and 0.5% on net assets in excess of £350m.
Hipgnosis catalogue sale cancelled as shareholders vote against continuation
Read more on investmentweek.co.uk
