Structure of the Deal: Rebuilding Under the Insolvency Act
The merger will take the form of a scheme of reconstruction under the Insolvency Act 1986, wherein Henderson European will wind itself up and transfer its assets to Fidelity European Trust PLC. In return, Henderson’s shareholders will receive newly issued shares in the combined entity.
Shareholders will also have a cash option, limited to 33.3% of the issued capital, though it comes with a discount.
The new, enlarged Fidelity European Trust will continue to be managed by FIL Investments International, under the stewardship of seasoned portfolio managers Sam Morse and Marcel Stötzel. The merger is expected to deliver economies of scale, lower management fees, and boost liquidity.
The Vision: Becoming Europe’s Premier Investment Vehicle
Both firms are aiming high. Davina Walter, chair of Fidelity European, described the union as more than just a cost-saving exercise:
“This is an exciting opportunity, with compelling benefits for both sets of shareholders, to create the ‘go-to trust’ for investing in Europe. The proposals will result in the company being well positioned to continue to deliver attractive returns.”
With combined assets exceeding £2.1 billion, the newly formed entity will rank as one of the most formidable trusts focused on long-term European equities.
