JPMorgan Multi-Asset Growth & Income merges with JGGI due to small size reducing appeal to investors
The merger is to be affected through a scheme of reconstruction of MATE, which will see its assets transferred and shareholders will receive new shares in JGGI.
The notice said the boards have signed Heads of Terms regarding a proposed merger of the companies.
The merger will be carried out through a scheme of reconstruction of MATE, which will see its assets transferred and shareholders will receive new shares in JGGI.
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The aggregate net asset value of the assets to be transferred over to MATW is estimated to be approximately £71m.
By the end of March 2024, the companies expect the process to be completed.
The notice included that MATE's board believes that the merger would be «the most attractive option for MATE's shareholders» and cites «strong performance, improved share rating, significantly greater economies of scale and secondary market liquidity» as the reasons.
This would be the third JGGI merger in the past few years, with the most recent being its merger with JPMorgan Elect in October 2022.
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Sarah MacAulay, chair of MATE, said: «Your board has been conscious for some time that MATE's relatively small size reduced its appeal to investors, while prospects for the company's growth have been limited by difficult market conditions. Unfortunately, size does matter due to the implications for costs and for the liquidity of MATE's shares.
»The board believes that the proposed combination with JPMorgan Global Growth & Income plc offers shareholders exposure to a large, liquid company with significantly lower costs and a well-established dividend policy.
«Further
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