Schroder Asian Total Return and Pacific Assets Trust agree merger
Schroder Asian Total Return Investment Co PLC and Pacific Assets Trust PLC on Thursday announced an agreement for a proposed combination.
The investors in the Asia Pacific region said Pacific Assets shareholders will be entitled to receive new shares in Schroder ATR.
They will also have the option to participate in a cash exit, which will be limited to 25% of Pacific Assets’ share capital and will be offered at a 2% discount.
‘The scheme will create a combined entity with significant scale, which is expected to deliver cost efficiencies for both ATR and continuing Pacific Assets shareholders,’ the two firms said.
The enlarged ATR is expected to have a pro forma net asset value of around £1.1 billion.
‘With greater scale, it is anticipated that ATR will be attractive to a wider range of investors, who may have been constrained by ownership restrictions, and that the secondary market for its shares will be more liquid,’ ATR said.
The enlarged ATR will put forward a 15% performance-related tender offer to its shareholders if, over the five years to the end of 2030, ATR’s NAV total return does not exceed the total return of the MSCI AC Asia Pacific ex Japan index.
The two firms said they aim to convene general meetings later in 2026, with the scheme becoming effective no later than the fourth quarter of 2026.
ATR Chair Sarah MacAulay said: ‘The proposed combination will provide shareholders with the scale and liquidity that is increasingly desired in the investment trust industry.
‘The board believes that the proposed combination is compelling for Pacific Assets, ATR and prospective shareholders and will position ATR for future growth as the pre-eminent Asia Pacific investment company.’
Pacific Assets said it concludes its strategic review with the combination with ATR.
Schroder ATR shares were 0.8% lower at 664.76 pence each on Thursday morning in London, while Pacific Assets shares were up 0.1% at 411.40p.
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