Diversified United Investment Limited (DUI) has finalised the exchange ratio for its proposed merger with Australian United Investment Company Limited (AUI), with a shareholder meeting scheduled for 16 April 2026 to approve the scheme.
- Exchange ratio fixed at approximately 0.4724 AUI shares per DUI share
- Ratio based on net tangible assets as of 9 April 2026
- Shareholder meeting set for 16 April 2026 to vote on the scheme
- Federal Court approval also required for merger completion
- Eligible DUI shareholders to receive new AUI shares upon scheme implementation
Exchange Ratio Determination for DUI-AUI Merger
Diversified United Investment Limited (ASX:DUI) has announced the definitive exchange ratio for its proposed merger with Australian United Investment Company Limited (ASX:AUI). Under the terms of the members' scheme of arrangement, eligible DUI shareholders will receive approximately 0.4724 new AUI shares for each DUI share held at the Scheme Record Date. This ratio reflects the pre-tax net tangible assets per share of DUI and AUI as at 9 April 2026, adjusted for estimated transaction costs related to the merger.
Conditions and Upcoming Shareholder Meeting
The merger remains conditional on several approvals, including the endorsement of DUI shareholders at the Scheme Meeting scheduled for 12:00 pm on Thursday, 16 April 2026. This meeting will be held both in person at Ashurst Australia's Melbourne offices and online. Additionally, the scheme requires approval from the Federal Court of Australia before it can be implemented. Shareholders other than the excluded party, AUI itself, are eligible to vote on the proposal.
Context of the Merger Process
This announcement follows the dispatch of the Scheme Booklet to DUI shareholders, which provided detailed information about the merger and voting instructions ahead of the upcoming meeting. The Independent Board Committee of DUI has authorised the release of this exchange ratio, maintaining transparency in the merger process. The ratio calculation is precise, with rounding applied only to the aggregate number of new AUI shares issued to individual shareholders, as stipulated in the scheme documentation.
The merger has been subject to scrutiny and analysis, including an independent expert's assessment that found the scheme to be fair and reasonable for DUI shareholders. The directors of DUI have unanimously recommended voting in favour of the scheme, reflecting a consensus on the proposed transaction's merits.
Investors and market participants will be attentive to the shareholder meeting outcome and subsequent Federal Court approval, which will determine the merger's progression. The exchange ratio set today provides a concrete basis for shareholders to assess the value proposition of the transaction.
Bottom Line?
The finalisation of the exchange ratio marks a key milestone, but the merger's completion hinges on shareholder and court approvals in the coming weeks.
Questions in the middle?
- Will DUI shareholders approve the scheme at the 16 April meeting?
- How will the Federal Court assess the scheme's compliance and fairness?
- What impact will the merger have on the combined entity's market positioning?