Deal: PM Capital Asian Opportunities Fund Limited (PAF) and PM Capital Global Opportunities Fund Limited (PGF) have entered into a Scheme Implementation Deed (SID) to merge. Under the SID, PGF will acquire all of PAF’s shares which it does not already own by way of a recommended Scheme of Arrangement.

Value: Undisclosed.

Area: M&A, corporate.

Key players: The Baker McKenzie team was led by partner Richard Lustig, with assistance from partners Bill Fuggle and Helen Joyce, special counsel Caroline Tait, and associate Sophie Snow.

Deal significance: According to Baker McKenzie, the merged entity comprising PAF and PGF will have a portfolio pre-tax net asset value of $712 million.

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“The merger is expected to provide both PAF and PGF shareholders a number of significant benefits including: the reduction of fixed costs relative to investment returns, increasing return per share for any given return generated by the investment manager; no increase in aggregate investment management costs arising as a result of the merger; increased trading liquidity on the ASX making it easier for shareholders to buy and sell on market; and increased market awareness and following by brokers, researchers, financial planners and prospective investors,” Mr Lustig explained.

It is anticipated that PAF shareholders will receive detailed information relating to the merger in a Scheme Booklet to be sent to shareholders during November 2021 and will be given the opportunity to vote on the merger in December 2021, as per a Baker McKenzie statement.