Under the deal, 27.7 per cent of the trust's units would remain with Challenger Life Company, which would co-own the trust with the new entity.
Challenger Management Services would also continue to manage the trust.
"The independent directors of CLI unanimously recommend that CWT unit holders approve the scheme resolutions in the absence of a superior proposal and subject to the independent expert concluding that the scheme is in the best interests of CWT unit holders," CLI chair Brenda Shanahan said.
