AVI Japan Opportunity Trust Proposes Merger with Fidelity Japan Trust
Why we think this is neutral
This RNS announcement is a general update on a proposed merger between AVI Japan Opportunity Trust and Fidelity Japan Trust. It does not contain any specific financial or trading updates, so a neutral sentiment score is appropriate.
Key Points
- Proposed merger between AJOT and Fidelity Japan Trust
- Potential for material uplift in market value for FJV shareholders due to AJOT's narrower discount to NAV
- Attractive opportunity for FJV shareholders to join an outperforming investment trust driven by structural change in Japan
- FJV shareholders offered cash exit of up to 25% in connection with the proposed transaction
Summary
The investment trust proposes a merger with Fidelity Japan Trust, which could create a larger, more liquid fund targeting Japanese equities.
AVI Japan Opportunity Trust (AJOT) has proposed a merger with Fidelity Japan Trust (FJV). The combined entity would be a larger, more liquid fund targeting attractive investment opportunities in the Japanese equities space. The proposal is supported by FJV's largest shareholder, City of London Investment Management. FJV shareholders would be offered the choice to roll their investment into AJOT shares and/or receive a cash exit of up to 25% of FJV's shares.
Key Dates
May 2025
FJV continuation vote
GENERAL UPDATE