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Dundee’s Alliance Trust in UK’s largest-ever investment trust merger

Alliance Trust will change its name as part of the merger - but its headquarters will remain in Dundee.

The exterior of Alliance Trust offices, River Court, West Victoria Dock Road, Dundee.
Alliance Trust offices, River Court, West Victoria Dock Road, Dundee. Image: Kim Cessford / DC Thomson

Dundee’s Alliance Trust has announced the UK’s largest-ever investment trust merger with Witan Investment Trust.

The new entity will be named Alliance Witan Plc, and the company will remain headquartered in Dundee.

The merger is expected to create a combined company worth £5 billion.

The move follows the retirement announcement of Witan CEO Andrew Bell earlier this year.

A general meeting will be held for both companies, expected to take place in September.

The full merger will then likely finalise by the end of September or the beginning of October, dependent on approval from shareholders of Alliance Trust and Witan and the Financial Conduct Authority.

Alliance Trust merges with Witan

Witan shareholders are expected to benefit from an immediate uplift in market value on
completion of the transaction. They will have the option of a partial cash exit, it was confirmed.

Assets to be rolled over to Alliance Trust – which has its headquarters at Dundee’s City Quay – will include Witan’s listed investment company holdings. Witan’s secured loan notes will be novated to Alliance Trust.

Alliance Trust shareholders are not expected to suffer net value asset dilation as a result of the increase in the number of shares, bosses moved to reassure.

Dean Buckley, chair of Alliance Trust, said: “The formation of Alliance Witan brings together the two leading open-architecture multi-manager investment company propositions in the UK to form a FTSE 100 equity investment vehicle with the quality, cost efficiency and profile to play a leading role in the UK investment market.

“Shareholders will benefit from access to the proven investment process implemented
by our investment manager, Willis Towers Watson, and access to the world’s leading stock pickers.

“This is also a significant moment for our industry in broader terms – Alliance Witan
represents a key milestone in the history of the investment trust structure which has
demonstrated its capabilities very effectively over many decades.

Dean Buckley, chair of Alliance Trust. Supplied by Quill PR

“Combining our two historic companies, established in 1888 and 1909 respectively, recognises the attractive opportunity to deploy the investment strategy, which has proved to be robust through the investment cycle, at significantly greater scale.”

Largest investment firm on LSE

Andrew Ross, chairman of Witan, said: “Since Andrew Bell announced his intention to retire, we have been through an extensive process to identify the best candidate to take on the management of our shareholders’ assets.

“The board assessed a number of very strong proposals, including single-manager candidates with impressive track records.

Chair of Witan, Andrew Ross Image: Quill PR

“However, the board was unanimous in recommending the combination with Alliance Trust, which allows the continuation of our multi manager approach at lower fees and in a larger, more liquid vehicle.

“The companies share similar cultures and a mutual desire to provide a ‘one stop shop’ for retail investors in global equities.

“I am delighted to announce this transaction, the largest-ever investment trust combination, in Witan’s 100th year as a quoted company on the London Stock Exchange.”

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