(Alliance News) - Murray Income Trust PLC and Perpetual Income & Growth Investment Trust PLC on Wednesday unveiled plans for a tie-up, creating an investment manager with more than GBP1 billion in assets.
Perpetual Income shares were 6.1% higher at 231.21 pence each in London on Wednesday shortly before midday. FTSE 250-listed Murray Income was down 1.4% at 758.49p.
Murray Income, managed by Aberdeen Standard Investments, has grown its dividend for 46 years on the trot and explained that it has a similar "investment objective" to Perpetual Income & Growth. The duo's respective portfolios are "principally" weighted to UK equities.
"The proposed transaction will result in MUT being one of the largest investment trusts in the UK equity income sector, with gross assets in excess of GBP1 billion," Murray Income said.
The move comes just months after Perpetual Income & Growth ousted Invesco Fund Management as its fund manager. Perpetual Income & Growth in April said the move followed an extended period of underperformance of the company's benchmark.
"The board was of the view that a combination of the two companies would bring additional benefits to PLI shareholders, by offering exposure to Aberdeen Standard's UK equity strategy in a well-managed, and enlarged, investment trust with a highly competitive management fee," Perpetual Income & Growth said.
"The company has consulted with a number of its major shareholders who have indicated their support for the transaction."
The transaction is expected to close in the fourth quarter of 2020, should it secure the support of Perpetual Income & Growth 's shareholders at a general meeting to be convened soon.
By Eric Cunha; ericcunha@alliancenews.com
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Murray Income Trust (MUT)