Ashoka WhiteOak Emerging Markets proposes merger with Asia Dragon

No response from DGN board

Valeria Martinez
clock • 3 min read

Ashoka WhiteOak Emerging Markets (AWEM) has laid out a proposal to merge with the much larger Asia Dragon trust (DGN), despite receiving no response from the board on the terms.

In a stock exchange notice today (7 May), the AWEM board said the merger should create a vehicle of materially enlarged scale, with improved secondary market liquidity and a reduced ongoing charges ratio. The transaction would result in the voluntary liquidation of Asia Dragon, with its shareholders offered the choice of rolling over their investment into the enlarged trust or a cash exit capped at 50% of shares in issue.  Asia Dragon shareholders that opt to exit will have all or part of their shareholding realised at a 1% discount to formula asset value, or the prevailing net asset ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Investment Trusts