Milton Corporation Ltd (ASX:MLT) is closer to creating a $2 billion entity with Choiseul Investments Ltd (ASX:CHO), both companies agreeing on the terms of the merger.
Milton has announced both listed investment companies have entered into a merger implementation agreement, that will combine more than 18,000 of their shareholders.
If the transaction goes ahead, new Milton shares will be issued to Choiseul shareholders in exchange for their Choiseul shares.
The benefits of the merger are expected to include an equity investment portfolio which Milton has managed since 1992 and more cash for future investments.
It is expected that Choiseul shareholders will consider the scheme in November and if approved, the new Milton shares will be issues in December.
Milton Corporation reported a net profit of $73.1 million for the year to 30 June 2010, down 5.3 per cent on the year before.