Diversified United Investment Limited (DUI) has achieved a significant corporate milestone with the scheme of arrangement merging it with Australian United Investment Company Limited (ASX: AUI) becoming legally effective as of 21 April 2026. The announcement follows DUI’s lodgement of Federal Court orders with the Australian Securities and Investments Commission under the Corporations Act, marking a decisive step in what has been a lengthy process for both investment companies.
Under the terms of the scheme, DUI shareholders will receive approximately 0.47241 new AUI shares for each DUI share they held as at the scheme record date of 7.00 pm on 23 April 2026. This exchange ratio was previously disclosed in the scheme booklet dated 12 March 2026, and represents the outcome of negotiations and valuations undertaken by both companies’ boards and independent advisers. The actual number of shares issued to individual shareholders will be calculated using the precise formula outlined in the scheme documentation, with only the aggregate share issuance subject to rounding adjustments.
Timing considerations are now critical for shareholders monitoring this transaction. DUI shares were permitted to trade on the ASX until close of business on 21 April 2026, with new AUI shares commencing trading on a deferred settlement basis from 22 April 2026. Implementation of the scheme and issuance of the consideration shares to eligible DUI shareholders is expected to occur on 30 April 2026. This sequencing allows for an orderly transition and ensures that investors understand the key dates affecting their shareholdings and any trading positions they may hold.
For investors in either company, the merger represents a consolidation within the managed funds sector and creates a larger combined entity. The exchange ratio of 0.47241 AUI shares per DUI share reflects the relative valuations determined through the scheme process. Investors who previously held DUI shares should note that they will become AUI shareholders following implementation, which carries implications for dividend policies, portfolio positioning, and any associated management fee structures that may apply going forward.
DUI shareholders requiring further information can access the dedicated Shareholder Information Line on 1300 911 275 during business hours, Monday to Friday, excluding public holidays. The line operates between 8.30 am and 5.30 pm for those seeking clarification on scheme details or their entitlements. This announcement was authorised for release by DUI’s Independent Board Committee and represents a price sensitive matter flagged as material by the ASX.
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.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
