By Richard Henderson
A listed investment company run by Wilson Asset Management will merge with struggling rival Templeton Global Growth, extending a bout of consolidation in the sector in a deal that removes one of world’s largest fund managers from the LIC market.
WAM Global, one of eight LICs operated by Geoff Wilson’s group, will acquire shares in the $300 million Templeton portfolio and issue its current shareholders with WAM Global stock and options, or allow them to cash out at the full value of their holdings.
Under the agreement, Templeton Global Growth shareholders will be able to sell out of the fund without stomaching a painful discount for the first time in nearly seven years.
The merger caps a strategic review announced by the Templeton LIC in October to address the gap between the portfolio’s share price and its assets.
WAM Global will bolster its assets by 50 per cent to more than $900 million, making it one of the largest LICs on the ASX that invests in international shares.
Read more in the Australian Financial Review.