Henderson High Income Trust PLC Flash Note from QuotedData
04 Octobre 2023 - 5:34PM
RNS Non-Regulatory
TIDMHHI
Henderson High Income Trust PLC
04 October 2023
Henderson High Income / Henderson Diversified Income - Flash
note from QuotedData
4(th) October 2023
Merger terms agreed
Henderson Diversified Income (HDIV) has agreed heads of terms
for a combination with Henderson High Income (HHI). As part of the
deal, shareholders in HDIV will have the option to take cash for
all or part of their holding if they choose.
In July 2023, HDIV's chairman noted (see our news story here)
that the trust had shrunk through share buybacks, and that this was
inflating its average running costs and affecting liquidity in its
shares. More importantly, he also made some observations about the
fund's investment approach (devised at launch in 2007) and the
impact that this might be having on the sustainability of HDIV's
income and shareholders' total returns (see page 4).
The HDIV board invited proposals from a number of investment
companies with alternative investment processes, and believes that
a combination with HHI offers numerous benefits. There are also
benefits for HHI shareholders if HHI is able to expand. In
addition, as we detail on page 7, Janus Henderson (manager of both
trusts) is making a considerable contribution towards the costs of
the scheme.
It will be a shame to see HDIV go, but a combination with HHI
looks like a sensible option to us. There is little-to-no income
dilution for HDIV shareholders, a small immediate capital uplift,
and better prospects for capital growth. HHI will still offer some
exposure to the higher yields that are now available from bonds,
and it should be a bigger, more appealing, more liquid, and more
efficient trust.
Full Research:
https://quoteddata.com/research/henderson-high-income-henderson-diversified-income-merger-terms-agreed-qd/
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High Income Trust Plc and Henderson Diversified Income Trust Plc
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END
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October 04, 2023 11:34 ET (15:34 GMT)
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