Hunter Hall International Limited (ASX:HHL) has announced it has entered into a merger agreement with fund manager, Pengana Holdings Pty Ltd.
Subject to shareholder approval from both investment managers, the merger would see their combined funds under management (FUM) total about $3.1 billion.
The merger involves Hunter Hall acquiring all the Pengana shares, in return for approximately 74.1 million Hunter Hall Shares to Pengana shareholders.
Pengana would also secure a 73% stake in Hunter Hall.
Hunter Hall says the deal would also result in a $6 million back office and occupancy saving every year, from the 2018 financial year onwards.
The proposed merger would also result in increased distributions across their platforms.
Hunter Hall International Limited (ASX:HHL) reported a $3.1 million profit after tax for the half-2017 financial year.