LONDON, UK: The Board of Henderson High Income Trust plc (HHI) has agreed heads of terms with the Board of Henderson Diversified Income Trust plc (HDIV) in respect of a proposed combination of HDIV with HHI.

The combination, if approved by each company’s shareholders, will be effected by way of a scheme of reconstruction and winding up of HDIV and the associated transfer of part of the assets and undertaking of HDIV to HHI in exchange for the issue of new ordinary shares in HHI.

Following implementation of the proposals, the enlarged HHI will continue to be managed, on the same basis as currently, by Janus Henderson Investors UK Limited with David Smith continuing as the lead portfolio manager, supported by the Janus Henderson Global Equity Income team and the fixed income team for the bond allocation.

The Board of HHI believes that, if the proposals are implemented, HHI shareholders will benefit from, amongst other things, the economies of scale that are expected to result from the enlarged asset base, including improved market liquidity in HHI shares and cost efficiencies.

The proposals will be subject to approval by the shareholders of both HHI and HDIV in addition to regulatory and tax approvals.

The Chairman of HHI, Jeremy Rigg, commented: “This combination offers attractive benefits for our existing shareholders and shareholders in HDIV who elect for the rollover option. Supported by the Janus Henderson group, the combination will increase the size of HHI, improve the liquidity and marketability in the Company’s shares and help to reduce the ongoing charges ratio by spreading costs across a larger shareholder base, which is in the interests of both existing and new shareholders.

HHI has a strong track record of providing a high level of income for shareholders whilst also delivering long-term capital growth and the Company remains committed and focused on continuing to deliver on these objectives.”

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