Gartmore Growth merges with Artemis Alpha

27th Sep 2010 11:35

Gartmore Growth Opportunities (GGO) has reached an agreement in principle to merge its assets with Artemis Alpha Trust (ATS). According to a statement issued by both parties this morning, the merger will be effected by the reconstruction and 'winding up' of GGO.ATS, a UK investment company, had net assets of circa £90.1m, as of 24 September 2010. Shareholders of GGO are offered the choice to either continue their investment by rolling into ATS, receiving the same number of shares but at 98.5% of the formula asset value (FAV) of their existing shares. Their other option is to take an immediate cash exit at 95% of FAV, limited to 30% of the issued share capital of GGO.All shareholders of ATS, and those of GGO electing to rollover, will benefit from a bonus issue of subscription shares by ATS, meaning that they will receive 1 subscription share in ATS for every 7 ordinary ATS shares of the company.According to a statement announced on 13 September 2010 in relation to a review of the management arrangements of GGO, the board received 14 proposals from investment managers to continue the management of the company's assets.The proposal for merger between GGO and ATS will be subject to respective shareholders approval, sought to be obtained in December 2010. Once the merger is completed, ATS will continue to be managed by John Dodd and Adrian Paterson.