Ashoka WhiteOak Emerging Markets (AWEM) has laid out a proposal to merge with the much larger Asia Dragon trust (DGN), despite receiving no response from the board on the terms.
In a stock exchange notice today (7 May), the AWEM board said the merger should create a vehicle of materially enlarged scale, with improved secondary market liquidity and a reduced ongoing charges ratio. The transaction would result in the voluntary liquidation of Asia Dragon, with its shareholders offered the choice of rolling over their investment into the enlarged trust or a cash exit capped at 50% of shares in issue. Asia Dragon shareholders that opt to exit will have all or part of their shareholding realised at a 1% discount to formula asset value, or the prevailing net asset ...
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