London-based activist manager Asset Value Investors (AVI) is preparing to deploy an additional JPY38bn ($243m) into Japanese small- and mid-cap companies after completing the merger of two listed investment trusts, according to a report by Bloomberg.
AVI Japan Opportunity Trust will acquire roughly £184m of net assets from Fidelity Japan Trust via the issuance of 110.7 million new shares, following an agreement reached in August. The incoming capital — largely cash or cash equivalents — will be invested across existing portfolio companies and a small number of new positions.
AVI typically targets companies with substantial net cash and securities on their balance sheets, representing over 30% of market capitalisation. As of October, core holdings included Wacom, Eiken Chemical and Rohto Pharmaceutical.
