Aurora Investment Trust Plc (LSE:ARR) has announced a proposed combination with Artemis Alpha Trust which will create an enlarged group holding approximately £353 million in net assets.
Managed by Phoenix Asset Management, Aurora is billed as a value trust seeking long-term investment returns.
It has stakes in housebuilder Barratt Developments PLC (LSE:BDEV), Lloyds Banking Group PLC (LSE:LLOY) and Frasers Group PLC (LSE:FRAS), among others.
The merger is intended to enhance liquidity for both Aurora and Artemis Alpha shareholders and reduce ongoing charges as Aurora’s fixed costs will be spread over a larger asset base.
Lucy Walker, chair of Aurora, stated: "The Aurora board is delighted to welcome Artemis Alpha shareholders who will enter into a similar philosophy and portfolio, and the enlarged trust will benefit all shareholders through enhanced liquidity."
The proposal is subject to shareholder approval from both Aurora and Artemis Alpha, as well as necessary regulatory and tax approvals.