- City of London Investment Group said it had entered into a $78.4m merger agreement to acquire Karpus Management, a US-based investment management business.

The merger would reinforce the group's presence in the US where it was already very well established and represented an opportunity for significant diversification, the company said.

It was estimated that as at 31 May 2020, City of London Investment and Karpus Management had funds under management of approximately US$5bn and approximately US$3.4bn respectively.

Under the terms of the deal, the company would issue 24.1m shares to Karpus for 325p per share, worth £78.4m.

Karpus shareholders would take a 48% stake in City of London Investment Group.

Upon the completion of the deal, Karpus shareholders would also be entitled to a cash payment of up to USD550K based on the net working capital of Karpus.

At 10:11am: [LON:CLIG] City of London Investment Group PLC share price was +13p at 338p

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