The £34m Ashoka WhiteOak Emerging Markets Trust (AWEM) has made a proposal to merge with Abrdn’s Asia Dragon Trust.
If approved, the deal would result in the voluntary liquidation of the £607m Asia Dragon trust, with shareholders either moving over to the enlarged Ashoka trust or taking a cash exit, which has been capped at 50% of issued shares.
In a stock exchange announcement this morning (7 May), the AWEM trust’s board said it had received positive feedback from 56% of Asia Dragon’s shareholders regarding the potential deal.
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However, Martin Shenfield, chair of AWEM, said that the trust’s board had not received “any meaningful engagement” with the board of Asia Dragon.
“Today we announce our proposed transaction alongside the re-confirmed support in principle of c. 56% of Asia Dragon shareholders to advance this transformational initiative that we believe is in the best interests of both sets of shareholders.”
AWEM launched last year after it listed on the London Stock Exchange in May 2023.
The trust currently trades at a 5.62% discount to its net asset value, while Asia Dragon’s discount is wider at 14.61%.
