Aurora Investment Trust PLC and Artemis Alpha Trust PLC on Monday announced a planned tie-up.
Under the signed heads of terms, Artemis Alpha’s assets will be rolled into Aurora in exchange for the issue of new ordinary shares in Aurora, with a cash exit option for up to 25% of Artemis Alpha’s existing issued capital also available.
The scheme is expected to become effective in the fourth quarter of this year, after which Aurora Investment will change its name to Aurora UK Alpha PLC.
Aurora Investment Trust is a London-based investment trust and alternative investment fund, while Artemis Alpha Trust is a London-based investment trust, which is focused on the UK.
Artemis Alpha Chair Duncan Budge said: ‘After consulting our major shareholders, the board is pleased to propose the combination of Artemis Alpha and Aurora, which will bring together two investment companies that have long shared a high-conviction investment approach to create a larger, more attractive proposition for investors with enhanced secondary market liquidity and a lower cost ratio.’
Aurora Investment Chair Lucy Walker said: ‘The Aurora board is delighted to welcome Artemis Alpha shareholders who will enter into an investment trust with a similar philosophy and portfolio, and the enlarged trust will benefit all shareholders through lower fees and better liquidity.’
Aurora Investment shares were up 0.8% at 262.00 pence each on Monday morning in London, giving it a market capitalisation of just below £200 million. Artemis Alpha shares traded 6.2% higher at 394.10p each, with a market cap of £128.9 million.
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