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Franklin Global Trust PLC on Thursday said it has agreed heads of terms for a merger with Invesco Global Equity Income Trust PLC. The Edinburgh-based investor formerly known as Martin Currie Global Portfolio Trust PLC said its shareholders will be entitled to elect to receive new shares in IGET and/or cash. Invesco Fund Managers will continue to manage the enlarged IGET’s portfolio in accordance with its existing investment objective and policy. The combination will result in a ‘significant increase’ in IGET’s size, with net assets of up to £445 million following the combination, depending on cash elections. ‘With greater scale, the enlarged IGET is expected to appeal to a broader range of investors, which should result in higher trading volume and market liquidity in the enlarged IGET’s shares compared to either FRGT or IGET historically,’ IGET said. Each company will bear its own costs relating to the scheme, with the enlarged IGET bearing any stamp duty or listing costs relating to the new IGET shares. Following the completion of the scheme, it is expected that FRGT Chair Christopher Metcalfe will join the board of IGET. The firm said it expects to post documentation related to the merger to shareholders in January 2026 after the changes to prospectus rules, with the merger expected to be completed in February. ‘The board undertook a thorough review of all available options for the company’s future. We believe IGET’s proposal offers many attractive features, including enhanced scale, improved liquidity, a strong record of investment performance, as well as a full cash alternative for shareholders. The board intends to roll its holdings into the new, enlarged IGET vehicle and looks forward to the future with confidence,’ said FRGT Chair Metcalfe. IGET Chair Sue Inglis said: ‘We are delighted that, after a comprehensive review, the board of FRGT has concluded that a combination with IGET offers the best outcome for their shareholders. ‘We believe that the proposed combination will provide benefits for shareholders of both companies, creating a substantially larger, more liquid company with an outstanding track record, a predictable and attractive level of dividend income and competitive running costs. Added to that, we are confident that our portfolio managers’ proven distinctive and disciplined investment approach will continue to stand the company in good stead through different market conditions.’ Shares in Franklin Global Trust were up 0.3% at 368.00 pence in London on Thursday afternoon while Invesco Global Equity Income Trust shares fell 0.5% to 370.00p. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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