Triple LIC merger between WAM Capital, Westoz, Ozgrowth

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Geoff Wilson’s WAM Capital will acquire both Westoz and Ozgrowth in an accretive deal that takes the larger LIC to $2b in assets.

Geoff Wilson's WAM Capital will absorb junior listed investment companies Westoz Investment Company and Ozgrowth in a triple all-share merger that gives WAM Capital more than $300 million of assets for $271.5 million.

Geoff Wilson of Wilson Asset Management said: “The LIC industry has significant room for continued growth.”The deal is accretive for WAM Capital, as the new shares will be issued at a premium to the value of its underlying assets.has strengthened the industry, creating economies of scale, providing opportunities for smaller players to grow and delivering liquidity to investors.

The eventual level will be based on a ratio of WAM Capital's share price and the pre-tax valuation of the target LICs' underlying assets, or net tangible asset value , plus a premium of 7.5 per cent.

 

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