Platinum to merge listed investment company with international fund
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The news: Platinum Asset Management says the board of its underperforming listed investment company Platinum Capital (PMC) has agreed to merge with the Platinum International Fund.
The numbers: Under the deal, Platinum International Fund will issue units to each PMC shareholder in exchange for their shares, with the number of units to be calculated with reference to the relative net asset value per unit to PMC’s post-tax net tangible asset backing.
In early trading on the ASX, Platinum Capital shares were up 4.3% to $1.46 each, while Platinum International Fund units were up 0.4% at $5.01 each. Platinum Asset Management shares were up 0.66% to $1.07.
The context: The deal comes a few months after Platinum Asset Management announced a formal strategic review in April, with the objective of reducing the share price discount to the investment company’s net tangible asset backing per share.
Platinum said its investment management arm submitted a confidential proposal to merge PMC with the Platinum International Fund, which was accepted by the PMC board of directors, subject to formal legal, tax and operational due diligence.
The source: ASX announcement
