European Opportunities Trust (LSE:EOT) announced it has concluded that a scheme of reconstruction and asset transfers to JPMorgan European Growth & Income plc (JEGI) and/or LionTrust European Opportunities Fund (LEO), alongside an uncapped cash exit, represents the best outcome for shareholders as a whole.
The scheme would transfer certain assets and the undertaking of EOT into JEGI, and a newly established LT European Opportunities Fund (LEO), with cash entitlements calculated off a Residual NAV less a 2%. cash option discount.
Heads of terms have been agreed and EOT Shareholders representing approximately 47.8%. of issued share capital have indicated support, and the Board expects the Scheme to become effective during Q3 2026 subject to shareholder, regulatory and tax approvals.
"After consulting with shareholders, the Board is pleased to present proposals which offer a range of choices to meet the differing requirements of the disparate elements of the shareholder base," said Matthew Dobbs, Chairman.
JEGI is presented as a like-for-like investment trust option with a 4%. annual dividend policy, top-quartile NAV total return in the AIC Europe sub-sector over 1, 3 and 5 years (23%, 57% and 83% to 27 May) and an ongoing charges ratio of 0.64%.
JPMorgan Funds will make a financial contribution equal to 12 months' incremental management fees on assets moving to JEGI to offset transaction and transition costs and to benefit rolling shareholders.
LEO offers continuity of strategy and Alexander Darwall as portfolio manager in an open-ended structure with daily redemptions at NAV, projected ongoing charges of 0.72% and a Devon cost contribution to cover establishment costs.
