Diversified United Investment Limited (ASX: DUI) has announced that its scheme of arrangement with Australian United Investment Company Limited (ASX: AUI) is now legally effective as of 21 April 2026. The company lodged the Federal Court orders with the Australian Securities and Investments Commission under the Corporations Act, marking a significant milestone in the merger process. DUI shares traded on the ASX for the final time on 21 April 2026, signalling the formal transition into the implementation phase of the scheme.
Under the terms of the merger, 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 conversion ratio was established through a formula detailed in the scheme documentation and represents the exchange consideration that shareholders agreed to when voting on the proposal. The precision of this calculation underscores the technical nature of the transaction, with the footnote clarifying that individual shareholder entitlements will be rounded only at the aggregate level, consistent with the scheme’s detailed provisions.
The implementation is scheduled for 30 April 2026, when the scheme consideration will be issued to eligible shareholders. New AUI shares commenced trading on the ASX on a deferred settlement basis from 22 April 2026, providing the market with early access to pricing information and allowing investors to begin trading the post-merger entity before receiving their physical holdings. This staged approach reduces friction for shareholders and provides a smoother transition into the merged structure.
From an investor perspective, this announcement confirms that the merger will proceed without further court intervention or regulatory hurdles. The effective date of the scheme represents a low-risk point in the transaction timeline, as the regulatory and legal requirements have been satisfied. Shareholders who held DUI shares at the record date can now expect to receive their AUI consideration on the designated implementation date, assuming all conditions precedent have been satisfied as required under the scheme.
The merger consolidates two significant entities in the investment company space, creating a combined vehicle with expanded scale and asset base. For DUI shareholders, the transaction provides certainty regarding the value of their holdings through a fixed exchange ratio, while also providing exposure to the broader AUI shareholder base and any synergies the merged entity may realise.
Shareholders requiring further information can contact the dedicated Shareholder Information Line on 1300 911 275 between 8.30 am and 5.30 pm, Monday to Friday, excluding public holidays. The key date to monitor is 30 April 2026, when the scheme consideration will be issued and the merger formally concludes. This announcement is price sensitive and has been flagged as material by the ASX.
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.
