WAM Capital's (WAM's) merger with Premium Investors on 31 December 2012 has delivered the company a 28 per cent increase in funds under management (FUM).
The merger, which also saw WAM assets grow by $296 million and shareholders increase to 7,800, was agreed to by both boards in September last year.
"The merger makes WAM Capital more relevant in the market and a substantial listed company," WAM chairman Geoff Wilson said in a statement to the Australian Securities Exchange.
"The merger was consistent with our strategy to take select opportunities to grow the company for the benefit of WAM Capital shareholders," he said.
WAM Capital shareholders are also expected to benefit from reduced fixed administration expense ratios, increase in share liquidity and greater market relevance and coverage.
Under the terms of September's merger agreement, WAM Capital acquired 100 per cent of Premium Investors' shares on a net tangible assets (NTA) to NTA basis.
WAM offered Premium shareholders the option to exchange Premium shares for WAM Capital shares, elect to receive cash for their Premium shares or a combination of both.
"The independent directors believe the scheme is in the best interests of Premium shareholders and intend to vote their own Premium shares in favour of the proposal," WAM said at the time.
