The Federal Court of Australia has formally approved the merger between Diversified United Investment Limited (ASX: DUI) and Australian United Investment Company Limited (ASX: AUI), marking a significant milestone in the consolidation process. With Court approval now secured, the scheme is expected to become effective following lodgement of the Court orders with the Australian Securities and Investments Commission on 21 April 2026.
For DUI shareholders, the merger will result in the receipt of approximately 0.47241 new AUI shares for each DUI share held on 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 consideration that eligible shareholders will receive upon implementation. While the exact ratio has been rounded for announcement purposes, the actual calculation will follow the precise formula set out in the Scheme documentation, with only the aggregate number of new shares issued to each shareholder subject to rounding adjustments.
The timeline for completion is now clearly defined. DUI shares will continue trading on the ASX until close of trade on 21 April 2026, providing shareholders with a final opportunity to trade their holdings at market prices before the scheme takes effect. The new AUI shares to be issued as scheme consideration will commence trading on a deferred settlement basis from 22 April 2026, and implementation is expected to occur on 30 April 2026. This staggered approach allows the market to adjust to the new capital structure while ensuring an orderly transition for both companies and their shareholders.
From an investment perspective, the Court approval removes a key execution risk that has been hanging over both companies. Shareholders who voted to support the scheme at the earlier shareholder meeting can now proceed with confidence that regulatory hurdles have been cleared. The merger creates a larger investment entity by combining the portfolios and resources of both companies, potentially providing operational efficiencies and enhanced scale in the competitive investment management landscape.
The announcement includes practical information for shareholders through a dedicated Shareholder Information Line available at 1300 911 275 during business hours. This reflects both companies’ commitment to keeping stakeholders informed through what can be a complex transition process.
Investors holding DUI shares should note the key dates, particularly the 21 April 2026 trading cutoff and the 23 April 2026 Scheme Record Date, as these determine both trading eligibility and entitlement to scheme consideration. The next critical milestone will be the lodgement of Court orders and confirmation that the scheme has become effective, followed by the actual implementation on 30 April 2026. Shareholders should monitor announcements from both DUI and AUI for any updates or additional details regarding the transition process.
View the full ASX announcement (PDF)
About Diversified United Investment Limited (ASX: DUI)
Diversified United Investment Limited is an Australia-based listed investment company that invests in Australian equities, listed property trusts, and international equities. The company aims to create a diversified portfolio of quality companies primarily through shares listed on the ASX and international markets, with investment objectives focused on medium to long-term income and capital appreciation. Based in Melbourne, the company was founded in 1991 and provides dividend income to shareholders with the goal of capital appreciation over time.
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.
