New Risk • Apr 30
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 76% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (76% increase in shares outstanding). Minor Risk Dividend is not well covered by cash flows (202% cash payout ratio). Announcement • Apr 22
Australian United Investment Company Limited (ASX:AUI) completed the acquisition of remaining 93.2% stake in Diversified United Investment Limited (ASX:DUI). Australian United Investment Company Limited (ASX:AUI) signed an implementation deed to acquire remaining 93.2% stake in Diversified United Investment Limited (ASX:DUI) for AUD 1.1 billion on January 30, 2026. Diversified United Investment Limited shareholders would receive approximately 0.4815 Australian United Investment Company Limited shares for each DUI share under the scheme of arrangement. This consideration is subject to change based on changes in the pre-tax net tangible assets for each company, and will be determined definitively on the date that is 5 business days prior to the scheme meeting. As of April 10, 2026, In accordance with the Scheme, and based on the pre-tax net tangible assets per share of DUI (AUD 6.42) and AUI (AUD 13.59) as at April 9, 2026 (in each case as adjusted for estimated transaction costs associated with the Scheme to be incurred up to implementation of the Scheme), eligible DUI shareholders would receive approximately 0.47241 new AUI shares for each DUI share held at the Scheme Record Date, expected to be on April 23, 2026. Charles Goode AC is Chairman of both AUI and DUI and has elected to act in his capacity as Chairman of AUI and absent himself from the Board of DUI when it considers matters relating to the merger. A termination fee of AUD 11.659 million is payable by DUI to AUI during the Exclusivity Period and a termination fee of AUD 11.659 million is payable if the Implementation Deed is terminated by DUI for a material breach of the Implementation Deed by AUI or a material breach of an AUI Representation and Warranty and the Transaction does not complete.
The transaction is subject to approval of Diversified United Investment Limited's shareholders, being more than 50% of DUI Shareholders present and voting and at least 75% of the total number of votes cast on the Scheme Resolution by DUI Shareholders present and voting, at the Scheme Meeting and by the Federal Court of Australia. As of March 12, 2026, The Independent Directors unanimously recommend that DUI shareholders vote in favour of the Scheme, in the absence of a Superior Proposal and subject to the Independent Expert continuing to conclude that the Scheme is in the best interests of DUI shareholders. DUI shareholders (other than the Excluded Shareholder) will be asked to vote on the Scheme on April 16, 2026. At the Second Court Hearing, the Court will consider whether to approve the Scheme following the vote at the Scheme Meeting, scheduled on April 20, 2026. DUI will apply for the termination of the official quotation of DUI Shares on the ASX and for DUI to be removed from the official list of the ASX, each to occur on a date after the Implementation Date. As of April 13, 2026, Shareholders of AUI officially approved all key resolutions relating to the merger at an Extraordinary General Meeting (EGM) held on April 13, 2026. DUI shareholders are scheduled to vote on the merger on April 16, 2026. As of April 16, 2026, the transaction was passed by the requisite majorities of eligible DUI shareholders. As of April 20, 2026, the deal has been approved by the Federal Court of Australia.
The transaction is expected to be effective on April 21, 2026.
Herbert Smith Freehills Kramer acted as legal advisor for Australian United Investment Company Limited. Kroll Australia Pty Ltd acted as financial advisor and fairness opinion provider to the Independent Directors of Diversified United Investment Limited. Ashurst Australia acted as legal advisor and MUFG Corporate Markets as the DUI Share Registry. Lonergan Edwards & Associates Limited is the fairness opinion provider to Australian United Investment.
Australian United Investment Company Limited (ASX:AUI) completed the acquisition of remaining 93.2% stake in Diversified United Investment Limited (ASX:DUI) on April 21, 2026. The scheme of arrangement is effective. Diversified United Investment Limited will merge into Australian United Investment Company Limited as part of this arrangement. Declared Dividend • Feb 21
First half dividend of AU$0.17 announced Dividend of AU$0.17 is the same as last year. Ex-date: 27th February 2026 Payment date: 20th March 2026 Dividend yield will be 3.9%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (89% earnings payout ratio) but not covered by cash flows (114% cash payout ratio). The dividend has increased by an average of 2.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 11% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jan 30
Australian United Investment Company Limited (ASX:AUI) signed an implementation deed to acquire remaining 93.2% stake in Diversified United Investment Limited (ASX:DUI). Australian United Investment Company Limited (ASX:AUI) signed an implementation deed to acquire remaining 93.2% stake in Diversified United Investment Limited (ASX:DUI) on January 30, 2026. The consideration consists of common equity of Australian United Investment Company Limited at a ratio of 0.4815 per common equity of Diversified United Investment Limited. As part of consideration, an undisclosed value is paid towards common equity of Diversified United Investment Limited. Diversified United Investment Limited shareholders would receive approximately 0.4815 Australian United Investment Company Limited shares for each DUI share under the scheme of arrangement.
Mr Charles Goode AC is Chairman of both AUI and DUI and has elected to act in his capacity as Chairman of AUI and absent himself from the Board of DUI when it considers matters relating to the merger.
Herbert Smith Freehills Kramer acted as legal advisor for Australian United Investment Company Limited. Declared Dividend • Aug 23
Final dividend of AU$0.28 announced Shareholders will receive a dividend of AU$0.28. Ex-date: 28th August 2025 Payment date: 19th September 2025 Dividend yield will be 3.8%, which is about the same as the industry average. Sustainability & Growth Dividend is not adequately covered by earnings (92% earnings payout ratio) nor is it covered by cash flows (110% cash payout ratio). The dividend has increased by an average of 3.5% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 2.3% to bring the payout ratio under control, which is less than the 4.0% EPS growth achieved over the last 5 years. 
