THE SHAREHOLDERS of Dundee-based The Alliance Trust PLC and The Second Alliance Trust PLC yesterday voted to merge the two companies.

The merger proposals won overwhelming support from long-term and individual shareholders, many of whom hold their shares in PEPs, ISAs, Investment Plans and SIPPs provided and administered by Alliance Trust Savings Ltd.

Trading in shares in the larger, combined company, which will be called Alliance Trust PLC, is expected to begin on June 21, 2006.

It is expected to be the largest generalist investment trust company in the UK, with assets of around £2.8 billion (as at May 8, 2006).

As part of the merger proposals, shares in Alliance Trust PLC will be split on a 10-1 basis and the company will be introducing payment of dividends on a quarterly basis.

Commenting on the success of the merger, chairman Lesley Knox said, “The boards of both trusts are delighted that such a large number of shareholders supported the merger of the two trusts.

“This is the next chapter in our long and respected history as a core investment for those seeking a long-term store of increasing value.

“We will continue to pursue our objective by constantly improving our investment performance, diversifying our asset base and growing our subsidiary businesses and their earnings.”

Chief executive Alan Harden said, “Moving forward as one single company will enable us to become even more focused and react swiftly to investment opportunities, continuing to deliver great shareholder value.

“The trusts have increased their dividends for 39 consecutive years.

“Over that period, £100 invested in Alliance Trust in 1967 would be worth £15,882 today.

“We have been investing since the 1880s and our business was, is and will continue to be, creating value for shareholders for the medium and longer term.

“We are confident that the new structure will allow us to build sustainable real growth for our loyal shareholder base.”

Details of the voting information will be available on the company’s website at www.alliancetrusts.com in due course.