The scheme of arrangement between Diversified United Investment Limited (DUI) and Australian United Investment Company Limited (AUI) has been completed, marking the finalization of a merger process that consolidates two listed investment vehicles under a single ASX-listed entity. All DUI shares not previously held by AUI have been transferred to AUI, with eligible shareholders receiving approximately 0.47241 new AUI shares for each DUI share held as of the Scheme Record Date of 7:00 pm on 23 April 2026.
Eligible DUI shareholders now hold AUI shares at the predetermined exchange rate established in the scheme documentation. The 0.47241 share ratio reflects the negotiated consideration and was calculated using the precise formula specified in the scheme rather than a simple rounded figure, ensuring accuracy in the transaction mechanics. This represents the pivotal moment when DUI shareholders transition their economic exposure from the DUI investment portfolio to AUI’s underlying assets and management structure. The merger effectively sees AUI absorb DUI’s operations and shareholder base.
DUI shareholders classified as ineligible under the scheme structure receive different treatment. Rather than receiving AUI shares directly, these shareholders will receive their pro-rata share of net cash proceeds generated from the sale of the new AUI shares that would otherwise have been issued to them. A sale agent handled this process, and cash distributions will follow the procedures outlined in the original scheme booklet. This mechanism ensures that ineligible shareholders still realize fair value for their investment, albeit through cash rather than equity ownership.
The transition is now operationally complete. DUI shares were suspended from ASX trading at market close on 21 April 2026, and the company intends to apply for termination of its official quotation effective from close of trade on 1 May 2026. Once delisting occurs, DUI will cease to exist as a standalone listed entity, and investors previously holding DUI will need to manage their investment position through either their new AUI shares or the cash proceeds they received, depending on their shareholder classification.
Investors should monitor the delisting completion and ensure they understand their individual treatment under the scheme. Those with ineligible status should confirm receipt of their cash proceeds and verify the amount aligns with their shareholding and the scheme calculations. For eligible shareholders now holding AUI shares, attention should shift to understanding AUI’s portfolio composition, management approach, and investment performance trajectory going forward. The delisting completion on 1 May 2026 represents the final operational step in the merger process. 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.
