The proposed merger requires the approval of at least 75% of Artemis Alpha shareholders, with a general meeting scheduled for October 17 to vote on the deal. Currently, 31.5% of Artemis Alpha shareholders and 31.6% of Aurora shareholders have expressed support for the merger.
Artemis Alpha and Aurora merger : Strategic Implications and Industry Trends
This merger comes as part of a broader trend within the investment trust sector, where consolidation is being driven by investor preferences for larger, more liquid, and cost-effective trusts. The Association of Investment Companies noted earlier this year that the number of investment trust mergers in 2023 has already matched the record set in 2022. The largest merger so far was between Tritax Big Box PLC and UK Commercial Property REIT Ltd., which created a real estate investment trust with a market capitalization of around £3.9 billion.
Aurora, which has been managed by Phoenix since January 2016, reported net assets of £215.7 million as of August 29, while Artemis Alpha held net assets worth £135.3 million as of April. The merger, pending approval from the Financial Conduct Authority, is expected to be finalized in the last quarter of the year.
