Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

WAM Global (ASX:WGB) proposes big merger with Templeton (ASX:TGG)

WAM Global Limited (ASX:WGB) has revealed a big potential merger with fellow globally-focused LIC Templeton Global Growth Fund (ASX:TGG).

Listed investment company (LIC) WAM Global Limited (ASX: WGB) has revealed a big potential merger with fellow globally-focused LIC Templeton Global Growth Fund Ltd (ASX: TGG).

What is the proposal?

It has been announced that the two global LICs have agreed a takeover deal.

The proposal is that the LIC will buy all of the Templeton Global Growth shares that it doesn’t already own.

There are two options that Templeton Global Growth can choose between.

A cash consideration has been arranged where Templeton Global Growth has agreed to offer to buy-back Templeton Global Growth shares based on the net tangible assets (NTA) per share after all current and deferred taxes and associated transaction costs of Templeton Global Growth to do this.

But there is also a scrip/shares takeover alternative.

The question is – what will Templeton Global Growth shareholders get? The number of new WAM Global shares to be issued will be calculated by reference to the relative NTA per share after tax, but before deferred taxes of WAM Global and Templeton Global Growth, which will be calculated in the same way as the monthly NTA announcements. The Templeton Global Growth NTA will be adjusted for the impact of the buy-back.

Templeton shareholders will also get a WAM Global option for every new share they receive. The option will give people the opportunity to buy WAM Global shares at $2.54 per option.

Management comments

WAM Global Chair Geoff Wilson said: “The WAM Global Board of Directors believe that the scheme will be beneficial to both companies and result in a superior merged entity leveraging Wilson Asset Management’s proven investment strategy.”

Templeton’s board believe the proposal is in the best interests of shareholders, as long as the independent expert makes the same conclusion and that there isn’t a better offer.

Summary thoughts

This seems like it may be a good outcome Templeton shareholders, but it would be interesting to know how much financial benefit WAM Global shareholders will get from being a larger LIC.

It’s a good idea to buy good LICs at a discount, so it could be a good idea to keep an eye on when (or if) WAM Global trades at a discount to its NTA.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content