Folkestone Education Trust (ASX:FET) has inked a merger implementation deed with Folkestone Social Infrastructure Trust (ASX:FST) ahead of a scheme meeting on December 19.
Folkestone Education Trust believes the potential tie-up will lift the company’s market capitalisation and enhance liquidity.
Folkestone Education Trust says the proposed deal is in line with the company’s strategy of acquiring portfolios and individual assets that add to earnings, portfolio quality and both tenant and geographic diversification.
Independent Chairman Vic Cottren has described the merger as a highly attractive value proposition with significant benefits.
The merger does not require additional capital from the company’s investors or financiers and is expected to be implemented on January 6.
Folkestone Education Trust reported a net profit of $53.78 million in the 2014 financial year.
