The Federal Court of Australia has approved the proposed merger between Diversified United Investment Limited (DUI) and Australian United Investment Company Limited (ASX: AUI), clearing a major regulatory hurdle for the combination. The Court’s approval, delivered on 20 April 2026, represents the final step required before the scheme of arrangement becomes effective, with DUI expecting to lodge the office copy of Court orders with ASIC on 21 April 2026.
Under the terms of the approved scheme, DUI shareholders will receive approximately 0.47241 new AUI shares for each DUI share held as at the Scheme Record Date of 7.00 pm on 23 April 2026. This exchange ratio was established through the merger process and will determine the value that DUI shareholders receive upon implementation. The calculation itself is not subject to rounding, though the aggregate number of shares issued to individual shareholders will be rounded according to the scheme documentation released in March 2026.
The merger represents a significant consolidation within Australia’s investment company sector. DUI shares will cease trading on the ASX following the close of trade on 21 April 2026, marking the end of the company’s independent trading life. Meanwhile, the newly created AUI shares arising from the scheme consideration will commence trading on a deferred settlement basis from 22 April 2026. This staggered trading arrangement reflects the administrative requirements of processing the share issuance to DUI shareholders.
Implementation is scheduled for 30 April 2026, when the scheme consideration will be issued to eligible DUI shareholders. This timeline provides clarity for investors and allows both companies to proceed with integration planning. The deferred settlement trading arrangement means investors will be able to trade the new AUI shares before physical settlement occurs, providing liquidity during the transition period.
For shareholders in either company, the approval addresses a key source of uncertainty. The Court’s endorsement of the merger terms signals judicial satisfaction that the arrangement is fair and reasonable to members. The specific exchange ratio of approximately 0.47241 AUI shares per DUI share has now passed regulatory scrutiny and will be implemented as approved, removing any ambiguity about the consideration DUI shareholders will receive.
Investors should monitor the lodgement of Court orders with ASIC, which will formally trigger the scheme’s effectiveness. The final trading date for DUI shares on 21 April 2026 represents a hard deadline for those holding positions in the standalone company. Those seeking to participate in the combined entity should ensure their shareholdings are recorded by the Scheme Record Date of 23 April 2026 to receive the merger consideration. The Shareholder Information Line on 1300 911 275 remains available for investors with questions regarding the merger process or their shareholdings.
View the full ASX announcement (PDF)
About Australian United Investment Company Limited (ASX: AUI)
Australian United Investment Company Limited is a listed investment company that seeks to provide income and capital appreciation to shareholders through a portfolio of securities predominantly comprising shares of companies listed on the ASX. The company invests in the public equity markets of Australia across sectors including banks, financials, healthcare, consumers, infrastructure, transport, mining and energy. Founded in 1953 and based in Melbourne, Australia, it operates as a publicly owned investment manager.
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