Australian investment managers Wilson Asset Management Capital and Premium Investors have announced their intention to merge, according to a statement from WAM.

Under the terms of the agreement, WAM Capital will acquire 100 per cent of Premium shares on a net tangible asset to NTA basis.

The new listed investment company would have combined assets of A$300 million and over 8,500 shareholders. It is not clear how and when staff will be integrated under the new structure.

WAM will offer Premium shareholders the option to exchange Premium shares for WAM Capital shares, elect to receive cash for their Premium shares, or a combination of both.

"The merger is consistent with our strategy to take select opportunities to grow the company for the benefit of WAM Capital shareholders," WAM Capital chairman Geoff Wilson said. "The increased capital base will expand the range of opportunities available for investment."

If it goes ahead, Premium chairman Lindsay Mann will be invited to the WAM Capital board.

Premium shareholders will be asked to vote to approve the scheme of arrangement at a meeting expected to be held in late-November.