By Cliona O’Dowd
Geoff Wilson’s WAM Global is gobbling up rival Templeton Global Growth Fund, pulling the trigger on a merger that will swell its assets under management to over $900m.
Announcing the tie-up to the market on Tuesday, WAM Global said it would buy the 85.3 per cent of Templeton shares that it doesn’t already own via a scheme of arrangement.
Templeton shareholders will get WAM Global shares and options based on the relative NTA per share of both funds, before deferred taxes.
There will also be a cash alternative for Templeton shareholders, who can cash out based on the NTA per share after current and deferred taxes and transaction costs.
The move comes just days after investment conglomerate Washington H Soul Pattinson announced its own merger with ASX-listed Milton Corp, as consolidation in the LIC sector heats up.
“It‘s fantastic for both sets of shareholders,” Mr Wilson said of the merger.
Read more in The Australian.