THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT ARE NOT FOR RELEASE,
PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART,
IN,INTO OR FROM THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND
POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) (THE
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IN WHICH THE SAME WOULD BE UNLAWFUL.

This announcement is not an offer to sell, or a solicitation of an offer to
acquire, securities in the United States or in any other jurisdiction in which
the same would be unlawful. Neither this announcement nor any part of it shall
form the basis of, or be relied on in connection with or act as an inducement to
enter into, any contract or commitment whatsoever.

19 June 2025

Fidelity European Trust PLC

(the "Company" or "FEV")

Proposed combination with Henderson European Trust plc ("HET")

  · The Boards of FEV and HET have agreed heads of terms in respect of a
proposed combination of the two companies pursuant to a scheme of reconstruction
of HET under section 110 of the Insolvency Act 1986.
  · The enlarged FEV will continue as the combined entity (the "Combined
Entity") and, with anticipated net assets of over £2.1 billion,(1) is expected
to benefit from enhanced marketability and profile as the flagship UK closed
-ended vehicle for investment in Europe.
  · The Combined Entity will continue to be managed by Fidelity in accordance
with FEV's existing investment objective and policy. Sam Morse and Marcel
Stötzel, FEV's experienced and award-winning portfolio managers, will continue
as the portfolio managers.
  · FEV will introduce lower tiered management fee arrangements as part of the
Proposals which, together with the economies of scale of the Combined Entity,
are expected to result in a material reduction to the Company's ongoing charges
ratio.
  · Fidelity will make a significant contribution to the costs of the proposals,
equivalent to a waiver of 12 months of management fees in respect of the assets
that roll over from HET. The Fidelity contribution, which is currently estimated
to have a value of approximately £2.4 million, is expected to fully offset FEV's
direct transaction costs, such that FEV shareholders are not expected to suffer
any NAV dilution from the direct costs of the combination. (1)
  · The Company's discount management policy will also be enhanced such that FEV
will seek to maintain any discount to net asset value in mid-single digits in
normal market conditions.

Introduction

The Boards of FEV and HET are pleased to announce that the companies have
entered into heads of terms for a combination of the two companies. This follows
a thorough review by the HET Board of the potential options for HET's future.
The combination, if approved by the companies' respective shareholders, will be
effected by way of a scheme of reconstruction pursuant to section 110 of the
Insolvency Act 1986 (the "Scheme"), resulting in the voluntary winding up of HET
and the associated transfer of part of its cash, assets and undertaking to the
Company in exchange for the issue of new ordinary shares in FEV (the "New FEV
Shares") to continuing HET shareholders (together the "Proposals").

Following implementation of the Proposals, the enlarged FEV will continue to be
managed, in accordance with its existing investment objective and policy, by FIL
Investments International ("Fidelity") with FEV's experienced and award-winning
portfolio managers, Sam Morse and Marcel Stötzel, continuing as the portfolio
managers.

The Proposals will be subject to, amongst other things, approval by the
shareholders of both FEV and HET in addition to regulatory and tax approvals.

Benefits of the Proposals

The FEV Board believes that, if implemented, the Proposals will have a number of
benefits for existing and future FEV shareholders, including:

  · Unparalleled scale and enhanced profile: the Combined Entity is anticipated
to have net assets in excess of £2.1 billion.(1) As the flagship UK closed-ended
vehicle for investment in Europe, the Combined Entity is expected to benefit
from enhanced profile and marketability.
  · Lower tiered management fees: Fidelity has agreed that, with effect from the
admission to listing and trading of the New FEV Shares, the annual management
fee payable by the Combined Entity will be reduced to: 0.70 per cent. of net
assets of less than £400 million; 0.65 per cent. of net assets between £400
million and £1.4 billion; and 0.55 per cent. of net assets in excess of £1.4
billion (the "Revised Fee Arrangements").(2) This is currently expected to
result in a blended annual management fee rate for the Combined Entity of 0.625
per cent. of net assets on completion of the Proposals.(1)
  · Lower ongoing charges ratio ("OCR"): owing to the Revised Fee Arrangements
and the economies of scale of the Combined Entity, the Proposals are expected to
reduce the Company's OCR significantly, allowing it to target an illustrative
OCR of 0.68 per cent. for the Combined Entity, representing a material
improvement to FEV's last reported OCR of 0.76 per cent.(1)(3)
  · Enhanced liquidity: the scale of the Combined Entity, as the UK's largest
and most liquid European-focused investment trust, is also expected to further
enhance secondary market liquidity for the Company's shareholders (including in
relation to its enhanced discount control policy).
  · Significant cost contribution from Fidelity: Fidelity has agreed to make a
material contribution towards the costs of the Proposals, equivalent to a waiver
of 12 months of management fees that would otherwise be payable in respect of
the assets to be transferred to FEV under the Scheme. This is expected to fully
offset the direct transaction costs for FEV shareholders.(1)
  · Enhanced discount management policy: in the light of the Proposals, the FEV
Board has taken the decision to enhance its discount management policy such that
the Company will seek to maintain any discount to net asset value in mid-single
digits in normal market conditions.
  · Shareholder register: the implementation of the Proposals would allow a
number of shareholders to consolidate their holdings across FEV and HET whilst
also creating a more diversified shareholder base through a combination of the
two share registers.

Further details of the Scheme

Under the Scheme, eligible HET shareholders will be deemed to have elected to
receive New FEV Shares in respect of their HET shares (the "Rollover Option")
save to the extent that they validly elect to receive cash in respect of some or
all of their HET shares (the "Cash Option").

The number of New FEV Shares issued to HET shareholders pursuant to the Rollover
Option will be determined on a formula asset value ("FAV") for FAV basis.

The FAV of each company will be calculated based on each companies' respective
net asset values (cum income with debt at par value) as at the Calculation Date,
subject to adjustments for any declared but unpaid dividends, the allocation of
transaction costs, the financial value of the Fidelity Cost Contribution
(discussed below) and, in the case of HET, also taking account of the
liquidators' retention and the application of the Cash Option Discount (also
discussed below).

The Cash Option is limited to 33.3 per cent. of HET's shares in issue (excluding
treasury shares). Should total elections for the Cash Option exceed this 33.3
per cent. threshold, excess applications will be scaled back into New FEV Shares
in a manner which is, as near as practicable, pari passu and pro rata among all
HET shareholders who have made such excess applications.

The Cash Option will be priced at a 1.75 per cent. discount (the "Cash Option
Discount") to HET's residual FAV per share as at a calculation date to be agreed
between FEV and HET (the "Calculation Date"), less the further costs of any
realisations required to fund the Cash Option. The aggregate value of the Cash
Option Discount will be credited to the HET rollover FAV for the benefit of HET
shareholders rolling over their shareholdings in HET into the Combined Entity.

The Boards of HET and FEV are also in discussions with the holders of HET's
privately placed loan notes (the "HET Loan Notes") to agree their treatment in
connection with the Scheme. Further details will be set out in the shareholder
documentation to be published by the companies in respect of the Scheme in due
course.

In accordance with customary practice for schemes of reconstruction pursuant to
section 110 of the Insolvency Act 1986 involving investment companies, the City
Code on Takeovers and Mergers is not expected to apply to the proposed
combination via the Scheme.

Costs of the Proposals and Fidelity Contribution

Each company will bear its own costs incurred in relation to the Proposals.

As noted above, Fidelity has undertaken to make a material contribution towards
the costs of the Proposals by means of a waiver of the management fees that
would otherwise be payable in respect of the assets to be transferred by HET to
FEV pursuant to the Proposals for the 12 month period immediately following the
Scheme becoming effective, calculated by reference to the New Fee Arrangements
(the "Fidelity Cost Contribution"). The financial value of the Fidelity Cost
Contribution is currently estimated to be approximately £2.4 million.(1)

For the purposes of the Scheme, the financial value of the Fidelity Cost
Contribution (calculated as at the Calculation Date) will first be credited to
the Company's FAV against any and all FEV transaction costs up to a maximum of
£1.25 million (inclusive of VAT) and any remaining balance of the Fidelity
Contribution will be credited to HET's rollover FAV. The Fidelity Contribution
is expected to fully offset the Company's direct transaction costs, such that
FEV shareholders are not expected to suffer any NAV dilution from the direct
costs of the Proposals.

Board composition

In accordance with the FEV Board's near-term succession planning, it is expected
that the Combined Entity's Board will have representation from the current HET
Board on completion of the Proposals.

Expected timetable

A circular to shareholders of the Company, providing further details of the
Proposals and convening a general meeting to approve the Proposals, and a
prospectus in respect of the issue of New FEV Shares in connection with the
Scheme, will be published by the Company as soon as practicable, with a view to
convening general meetings in early to mid-September 2025 and the Scheme
becoming effective by the end of September 2025.

As noted above, the Proposals will be subject to, amongst other things, approval
by the shareholders of both FEV and HET in addition to regulatory and tax
approvals. The expected timetable in respect of the Proposals remains subject to
change and, in particular, may be impacted by the treatment of the HET Loan
Notes under the Scheme.

The Chairman of FEV, Davina Walter, commented:

"The Board of Fidelity European Trust PLC believes this is an exciting
opportunity, with compelling benefits for both sets of shareholders, to create
the `go to trust' for investing in Europe. The proposals will result in the
Company being well positioned to continue to deliver attractive returns, with
new and existing shareholders benefitting from a reduced management fee and a
lower ongoing costs ratio."

"I would like to thank Fidelity for its commitment to the proposals and look
forward to working closely with the board of Henderson European Trust plc to
deliver an outcome that is in the best interests of both existing and future
shareholders."

For further information please contact:
FIL Investment Services (UK) Limited                   +44 (0)800 700 000
Claire Dwyer

Daniel Summerland

Dominic Newman
Dickson Minto Advisers LLP (Financial Adviser to FEV)  +44 (0) 20 7649 6823
Douglas Armstrong

Andrew Clark

Jamie Seedhouse

Notes:

(1)        Based on a combination of the Company and HET as at 17 June 2025
(with net assets of approximately £1.7 billion and £640 million respectively),
current cost estimates and assuming (i) there are no dissenting HET shareholders
and (ii) 33.3 per cent. of HET shares are validly elected for the Cash Option
(such that the Cash Option is fully subscribed). Figures exclude any impact of
HET portfolio realisation costs in connection with the Proposals and acquisition
costs (including any commissions, taxes (including stamp duty or equivalent),
transaction charges and/or market charges) associated with the transfer of
assets from HET to FEV. All figures are illustrative only, using currently
available information and estimates, and are subject to change.

(2)        The Company currently pays an annual management fee of 0.85 per cent.
of net assets up to £400 million and 0.65 per cent. of net assets in excess of
£400 million.

(3)        The Company's last published OCR (as at 31 December 2024) was 0.76
per cent. Based on, inter alia, the assumptions in Note (1) above, the
illustrative OCR of the Combined Entity on completion of the Proposals is
currently expected to be 0.68 per cent. (without making any adjustment to the
calculation of the annual amount payable under the Revised Fee Arrangements to
account for the Fidelity Cost Contribution given that this is a non-recurring
item).

Important Information

This announcement contains information that is inside information for the
purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 which is
part of UK law by virtue of the European Union (Withdrawal) Act 2018, as
amended. Following publication of this announcement, this inside information is
now considered to be in the public domain. The person responsible for arranging
for the release of this announcement on behalf of the Company is FIL Investments
International acting as company secretary.

The securities referred to herein have not been, and will not be, registered
under the U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States, except pursuant to an applicable exemption from
registration. No public offering of securities is being made in the United
States.

The Company's Legal Entity Identifier is 549300UC0QPP7Y0W8056.


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