DUI Shareholders to Receive 0.47241 AUI Shares Following Scheme Effectiveness

Scheme of Arrangement Gains Legal Effect

Diversified United Investment Limited (ASX:DUI) has officially reached a key milestone in its merger with Australian United Investment Company Limited (ASX:AUI), with the scheme of arrangement now legally effective following Federal Court approval and lodgement with ASIC. This development marks the formal end of DUI as an independent listed entity, with its shares ceasing trade after the close of 21 April 2026.

Share Conversion and Trading Timeline

Under the terms of the merger, eligible DUI shareholders will receive approximately 0.47241 new AUI shares for every DUI share held as of 7:00 pm on 23 April 2026. The issuance of these new shares is expected to occur on 30 April, with AUI shares commencing trading on a deferred settlement basis from 22 April. This staggered timeline ensures a smooth transition for investors as DUI delists and AUI’s shareholder base expands.

Merger Backed by Regulatory and Shareholder Approvals

The legal effectiveness follows the Federal Court’s green light just a day prior, confirming the scheme’s compliance with regulatory requirements. Earlier in April, DUI shareholders overwhelmingly supported the merger, attracted by anticipated dividend growth and cost synergies. The exchange ratio of roughly 0.4724 AUI shares per DUI share was set based on net tangible asset valuations, reflecting a carefully negotiated deal structure. This sequence of approvals and shareholder endorsement underscores the methodical approach taken to finalise the merger.

The merger is expected to deliver operational efficiencies and a projected 33% dividend increase for the combined entity, a factor that had resonated well with investors during the approval phase. The largest DUI shareholder, the Ian Potter Foundation, had also publicly backed the transaction, lending further weight to the scheme’s prospects.

What This Means for Investors

For DUI shareholders, the immediate implication is the cessation of DUI share trading and the transition to holding AUI shares. The deferred settlement trading of AUI shares starting 22 April offers a window for investors to adjust portfolios ahead of the official share issuance. Market participants should note the rounding nuances in share entitlements, although these are unlikely to materially affect individual holdings.

This merger consolidates two established investment companies, potentially creating a more streamlined vehicle for investors seeking exposure to diversified assets. Yet, questions remain about how the combined entity will perform post-merger, particularly in navigating market conditions and delivering on promised dividend enhancements.

Notably, this announcement follows the recent Federal Court approval announcement, which set the stage for today’s legal effectiveness and the final steps toward merger completion.