Miton Group fund manager Gervais Williams' FTSE-listed Diverse Income Trust is edging closer to a merger with the Henderson Fledgling Trust.
An update issued by the Diverse Income Trust on Friday stated that the board had agreed heads of terms with Henderson Fledgling Trust in respect of a future merger of the two companies.
Under the scheme, the Henderson Fledgling Trust would receive new Diverse Income Trust shares valued at a premium of 2.5% to their net asset value (NAV) as at the effective date of the scheme.
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The consideration for the issue of new Diverse Income Trust shares would be the transfer to Diverse Income Trust of the entire investment portfolio of Henderson Fledgling Trust, following the setting aside of amounts as required to meet the company's liabilities, by way of a scheme of reconstruction.
No cash exit is being offered as part of the scheme.
The Diverse Income Trust is managed by Gervais William and was established in April 2011. As of July 31st 2012, the trust's net asset value had grown by 2.4% over one month, 0.4% over three months, 2.5% over one year and 1.1% since launch.
As of the same date, its top five holdings as of this time were Zotefoams, CML Microsystems, Greencore Group, Quindell Portfolio and Abbey Protection with 2.2$, 2.1%, 2.0%, 1.8% and 1.7% stakes respectively.
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