(Alliance News) - Gabelli Merger Plus Trust PLC on Thursday reported an annual fall in net assets though it raised its full-year dividend.
In the year ended June 30, net asset value per share, cumulative of income, fell by 1.3% to USD9.71 from USD9.84. Net assets fell by the same rate to USD100.3 million from USD101.7 million.
The stock was untraded in London on Thursday afternoon, last quoted at USD8.75.
Gabelli Merger's net asset value returned 3.7% during the period, ahead of the US three-month Treasury Bill Index of 2.3%. Total return last year was 2.9%.
During the year, Gabelli Merger released dividends totalling USD0.48 per share, up 37% from USD0.35 last year.
Driving positive performance, the trust explained, was the USD33 billion acquisition of American software firm Red Hat Inc by IT giant IBM Corp. The takeover made significant progress, Gabelli Merger said, after it received European Commission approval in June.
Walt Disney Co's acquisition of Twenty-First Century Fox also contributed, after the deal secured final remaining regulatory approvals in March.
The trust said: "While there is no shortage of macro risks in the market, we continue to expect that robust balance sheets, growing cash reserves, and open debt markets will act as a driver of corporate merger activity in the near term, as companies use mergers & acquisitions as a means to stimulate growth."
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.