(Alliance News) - Henderson European Focus Trust PLC and Henderson EuroTrust PLC on Tuesday announced revised terms in respect of their intended merger.
The combination, announced in March, will create an investment company worth more than GBP700 million.
Under the updated proposals, the limits on the cash exit under the scheme and the HEFT tender offer have been increased to 15% from 5% of each company's issued share capital.
In addition, the pair's manager Janus Henderson Investors has committed around GBP1.6 million in costs with a view to ensuring the plans are cost neutral.
Reduced management fees for the combined trust are also pledged.
Under the terms of the updated proposals, the combined trust will benefit from a further improvement in management fee terms, with an additional reduction on the second management fee tier from 50 basis points per annum to 47.5 bps per annum.
In addition to the previous commitment of a 5-yearly performance-related tender offer under the proposals, the combined trust will consider, no earlier than after three years, whether it would be in the long term interests of shareholders to be offered additional opportunities to realise some of their investment in the trust.
Documentation is expected to be sent to each company's shareholders by the end of May, with a view to convening general meetings in June and July.
Shares in Henderson European Focus Trust PLC closed up 0.2% at 189.90 pence in London on Tuesday. Henderson EuroTrust PLC shares ended down 0.3% at 158.50p.
By Jeremy Cutler, Alliance News reporter
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