European Assets Trust shareholders approve merger with smaller companies trust

European Assets Trust PLC (EAT) shareholders overwhelmingly approved, with over 96% of votes cast, the proposed combination with The European Smaller Companies Trust PLC via a scheme of reconstruction and voluntary winding up. This approval, which saw approximately 27% of total voting rights exercised, will lead to EAT shares being disabled for CREST settlement from October 8, trading suspended from October 9, and reclassified shares suspended from listing on October 15, marking a definitive step in the trust's consolidation process.

Analysis

Shareholders of European Assets Trust PLC (EAT) have decisively approved the proposed combination with The European Smaller Companies Trust PLC (ESCT) through a scheme of reconstruction. The two special resolutions required for the merger passed with over 96% of votes cast, indicating strong support from participating investors. Notably, voter turnout was approximately 27% of total voting rights, a significant enough portion to validate the outcome. This approval formalizes the timeline for the trust's winding up, with EAT shares set to be disabled for CREST settlement on October 8, followed by a trading suspension on October 9 and a final delisting of the reclassified shares on October 15. The event removes a key uncertainty surrounding the merger, solidifying the path towards the consolidation of the two trusts and confirming the strategic direction previously outlined by management.

Key Decisions for Investors

• Investors holding European Assets Trust PLC shares must acknowledge the imminent trading suspension on October 9 and subsequent delisting, as liquidity in the stock will cease.
• Parties interested in exposure to the combined entity should now focus their attention on The European Smaller Companies Trust PLC, as initiating new positions in EAT is no longer practical.
• With shareholder approval secured, the primary focus for investors shifts to monitoring the execution of the merger, ensuring it proceeds according to the outlined timeline without procedural or regulatory delays.