LONDON, UK: The Board of JPMorgan Global Growth & Income plc (JGGI) has signed Heads of Terms with the Board of JPMorgan Elect plc (JPE) in respect of a proposed merger with JPE to be effected by way of a section 110 scheme of reconstruction by JPE and a transfer of assets to JGGI.

This will be the second combination that JGGI has undertaken in the past twelve months and the enlarged company will have net assets in excess of £1.7 billion (based on valuations as at 25 October 2022), creating a leading investment vehicle for global equity investing that delivers an attractive dividend yield.

The scale of the combined company should improve secondary market liquidity for the Company’s Shareholders and will allow for potential cost efficiencies.

JPMorgan Global Growth & Income (JGGI) shall continue to be managed by JPMorgan Funds Limited and the Company shall continue to implement its existing investment strategy and dividend policy.

The Board of JGGI believes that the proposals will enable JGGI shareholders to benefit from the greater economies of scale that are expected to result from the enlarged asset base, including greater liquidity in JGGI shares and cost efficiencies.

The proposals will be subject to the approval by the shareholders of both JGGI and JPE in addition to regulatory and tax approvals. It is expected that the Scheme and proposals will be completed by the end of the current calendar year.

The merger proposals will be effected by way of a scheme of reconstruction of JPE under section 110 of the Insolvency Act 1986, resulting in the voluntary liquidation of JPE and transfer of assets to JGGI. In accordance with customary practice for such transactions involving investment trusts, the City Code on Takeovers and Mergers is not expected to apply to the Proposals.

However, the proposals will be subject to other regulatory and tax approvals. The Proposals will also be subject to, inter alia, approval by the shareholders of each of JPMorgan Elect plc (JPE) and JPMorgan Global Growth & Income plc (JGGI).

Chairman of JGGI, Tristan Hillgarth, commented: “Building on the success of the Company’s combination with the Scottish Investment Trust PLC in August of this year, these proposals will add further scale and cost synergies that will allow both groups of shareholders to benefit from the greater scale of the trust. The Company will continue to benefit from the strength and depth of the JPMorgan management team and an investment strategy and process that has delivered strong results for shareholders.”