In a move set to create a stronger and more competitive investment entity, Phoenix Asset Management Partners Ltd. announced Monday that the trust it manages, Aurora Investment Trust PLC, has agreed to merge with rival Artemis Alpha Trust PLC. The combined entity, to be named Aurora UK Alpha PLC, is expected to have net assets worth approximately £353 million ($464 million).
Artemis Alpha and Aurora merger : Merger Details and Shareholder Options
The merger proposal offers Artemis Alpha shareholders the option to roll their shares into the new, larger trust or take cash for up to 25% of Artemis Alpha’s market capitalization, which stood at £121.4 million as of Monday afternoon. Aurora Investment Trust, which targets capital growth through investments in primarily U.K.-listed companies, will benefit from a larger asset base, which is expected to help streamline operations and reduce costs.
Lucy Walker, the chair of Aurora, highlighted the potential benefits of the merger, stating that Artemis Alpha shareholders would join an investment trust with a similar philosophy and portfolio. “The enlarged trust will benefit all shareholders through lower fees and better liquidity,” she said in a statement.
Legal Counsel and Shareholder Support
Aurora is receiving legal advice from Dickson Minto, while Artemis Alpha is being guided by Stephenson Harwood LLP, with a legal team led by partner Alex Haynes and managing associate Alan Sauvain.
