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abrdn New Dawn Investment Trust PLC and Asia Dragon Trust PLC on Friday announced agreement on an all-share merger. Under the plan, abrdn New Dawn will be wound up, and shareholders will receive new shares in Asia Dragon. They also will be offered a cash exit opportunity for up to 25% of abrdn New Dawn shares. This will be at a 2% discount to formula asset value, less the cost of realising assets to raise the necessary cash. abrdn Fund Managers Ltd is the investment manager for both trusts, and it will continue to manage the enlarged Asia Dragon, with Pruksa Iamthongthong and James Thom as portfolio managers. The two funds both invest in Asian companies. The investment policy of Asia Dragon will be changed to allow investment in Australasia, but the MSCI AC Asia (ex-Japan) Index will remain its benchmark. abrdn New Dawn said the merger will offer shareholders greater liquidity for their shares and will provide cost savings. The enlarged Asia Dragon Trust will have net assets in excess of £700 million and would be expected to qualify for inclusion in the FTSE 250 index, it said. abrdn New Dawn shares were up 6.6% to 263.30 pence on Friday morning in London, giving the company a market capitalisation of £275.3 million. Asia Dragon was marginally lower at 362.96p for a £416.9 million market cap. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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