Drayton Asia holders offered new options

SHAREHOLDERS in the investment trust Drayton Asia were yesterday offered a restructuring of their trust to dissuade them from accepting a pounds 125m bid from EFM Dragon.

The plan offers Drayton shareholders a choice of investing in a new successor investment trust or an existing unit trust, or taking cash worth 98 per cent of the net asset value of Drayton Asia.

The investment trust they will be offered will be worth between 101.5 and 102.3 per cent of the net asset value of the existing trust.

Ratan Engineer, chairman of Drayton Asia, said: 'We are trying to keep it simple and flexible so shareholders can choose their investment vehicle and the level of gearing.'

The new investment trust will be called Asian Investment Trust and managed by Invesco MIM. It will invest in developing Asian economies. The unit trust will be the Invesco South and East Asia Growth Trust, which Drayton said had been the best performing trust in its sector over the last five years.

Under the investment trust scheme, there will be two options: for every 100 Drayton Asia shares, there will be 75 Asia ordinary shares, 15 warrants and 25 zero dividend preference shares; alternatively there will be 100 Asia shares and 20 warrants.