RCS - Henderson HighIncome - Flash Note from QuotedData

Henderson High Income Trust

04/10/2023 16:34

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231004:nRSD7221Oa&default-theme=true

RNS Number : 7221O  Henderson High Income Trust PLC  04 October 2023

Henderson High Income / Henderson Diversified Income - Flash note from
QuotedData

4(th) October 2023

Merger terms agreed

Henderson Diversified Income (HDIV) has agreed heads of terms for a
combination with Henderson High Income (HHI). As part of the deal,
shareholders in HDIV will have the option to take cash for all or part of
their holding if they choose.

In July 2023, HDIV's chairman noted (see our news story here) that the trust
had shrunk through share buybacks, and that this was inflating its average
running costs and affecting liquidity in its shares. More importantly, he also
made some observations about the fund's investment approach (devised at launch
in 2007) and the impact that this might be having on the sustainability of
HDIV's income and shareholders' total returns (see page 4).

The HDIV board invited proposals from a number of investment companies with
alternative investment processes, and believes that a combination with HHI
offers numerous benefits. There are also benefits for HHI shareholders if HHI
is able to expand. In addition, as we detail on page 7, Janus Henderson
(manager of both trusts) is making a considerable contribution towards the
costs of the scheme.

It will be a shame to see HDIV go, but a combination with HHI looks like a
sensible option to us. There is little-to-no income dilution for HDIV
shareholders, a small immediate capital uplift, and better prospects for
capital growth. HHI will still offer some exposure to the higher yields that
are now available from bonds, and it should be a bigger, more appealing, more
liquid, and more efficient trust.

Full Research:

https://quoteddata.com/research/henderson-high-income-henderson-diversified-income-merger-terms-agreed-qd/
(https://quoteddata.com/research/henderson-high-income-henderson-diversified-income-merger-terms-agreed-qd/)

This research is also available free on our website www.quoteddata.com
(http://www.quoteddata.com) where you will also find news, performance data
and factsheets on every London listed Investment Company. QuotedData writes
and distributes research on a number of quoted companies, facilitates meetings
between those companies and existing and potential investors and assists in
raising additional capital where required.

NB: Marten & Co was paid to produce this note on Henderson High Income
Trust Plc and Henderson Diversified Income Trust Plc and it is for information
purposes only. It is not intended to encourage the reader to deal in the
security or securities mentioned in this report. Please read the important
information at the back of this note. QuotedData is a trading name of Marten
& Co Limited which is authorised and regulated by the Financial Conduct
Authority. Marten & Co is not permitted to provide investment advice to
individual investors categorised as Retail Clients under the rules of the
Financial Conduct Authority.

QUOTEDDATA

50 Gresham Street | London EC2V 7AY

Tel: +44 (0) 20 3691 9430

www.quoteddata.com (http://www.quoteddata.com) | research@quoteddata.com
(mailto:research@quoteddata.com) | www.martenandco.com
(http://www.martenandco.com)

 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRABUBDGDXGDGXS