DUI Shareholders to Receive 0.47241 AUI Shares Following Court Approval

Court Approval Clears Final Legal Hurdle for DUI-AUI Merger

The Federal Court of Australia has given the green light to the merger between Diversified United Investment Limited (ASX:DUI) and Australian United Investment Company Limited (ASX:AUI), approving the members' scheme of arrangement that will combine the two investment companies. This marks a critical milestone, enabling the scheme to become effective once the court orders are lodged with the Australian Securities and Investments Commission (ASIC), expected on 21 April 2026.

Shareholder Entitlements and Trading Timeline

Under the terms of the scheme, eligible DUI shareholders will receive approximately 0.47241 new AUI shares for each DUI share held as at the record date of 7:00 pm on 23 April 2026. This exchange ratio reflects the agreed valuation and was previously fixed ahead of the shareholder vote. DUI shares will continue trading on the ASX until close of trade on 21 April, after which they will be suspended ahead of scheme implementation.

New AUI shares will commence trading on a deferred settlement basis from 22 April 2026, allowing the market to adjust ahead of the official issuance of scheme consideration, which is expected to occur on 30 April 2026. The rounding of share entitlements to four decimal places applies only for announcement purposes, with precise calculations handled per the scheme's terms.

Merger Promises Dividend Growth and Cost Efficiencies

The court approval follows strong shareholder backing, with over 89% voting in favour of the merger during the recent scheme meeting. The deal is anticipated to deliver a 33% increase in dividends alongside annual cost savings of approximately $700,000, according to previous disclosures. The largest shareholder, Ian Potter Foundation, has also expressed support for the transaction, lending further confidence to the merger's prospects.

This approval is the culmination of a process that included setting the exchange ratio and dispatching the scheme booklet to shareholders, with the independent board committee recommending the merger. The transaction aims to create a larger, more efficient investment company with enhanced dividend potential for shareholders.

Investors can expect the combined entity's shares to reflect the merged portfolio and cost synergies once the scheme consideration is issued and trading fully normalises. Meanwhile, the market will be watching how the share price of AUI responds to the influx of new shares and the integration of DUI's assets.

Given the timing, the next key dates for investors are the record date on 23 April for scheme eligibility and the expected issuance of new AUI shares on 30 April. Monitoring the post-merger share performance will be crucial to assessing whether the anticipated dividend lift and cost savings translate into tangible shareholder value.

For a detailed look at shareholder sentiment and the terms underpinning the exchange ratio, see the recent coverage of the DUI Shareholders Back Merger with AUI.