7th Nov 2016 10:13
LONDON (Alliance News) - Closed-ended investment company BACIT Ltd said Monday it is proposing to change its investment policy in order to acquire life science investment funds currently held by the Wellcome Trust and Cancer Research UK, as well as place shares with the two charitable organisations and new investors.
BACIT, which stands for the Battle Against Cancer Investment Trust, said the move will see it acquire Syncona LLP, a private company founded by Wellcome which owns an existing portfolio of life science investments. BACIT also will acquire either all, or a majority interest in the CRT Pioneer Fund which is currently held by Cancer Research UK.
BACIT then will place new shares with Wellcome and Cancer Research UK, as well as making a placing and open offer of shares to existing and new investors, subject to a cap on the company's net asset value of GBP1 billion. The shares will be issued at a price equal to 101% of the company's net asset value per share at the time of the placing and offer.
Shares in BACIT were up 0.2% at 126.25 pence Monday. The company said its net asset value per share at September 30 was 125.88p.
Wellcome has agreed to invest approximately GBP319 million in new shares of BACIT, equal to the purchase price payable for Syncona of GBP166 million plus the value of its uncalled commitment to invest in Syncona. Cancer Research UK has agreed to invest approximately GBP17 million in BACIT's placement, representing GBP7 million in the value of its interest in the CRT Pioneer Fund plus its uncalled commitment to invest in CRT Pioneer Fund.
BACIT currently acts as a fund of funds and will shift to direct investment. After the placing, it expects to invest around GBP100 million a year in its gross assets in life science investments, with at least 25% to oncology projects and businesses. BACIT also will change its name to Syncona Ltd.
A general meeting of shareholders to vote on the plan is expected in December.
"We began BACIT in order to boost drug discoveries in the fight against cancer, both as a donor and as an investor and we have enjoyed a special relationship with The Institute of Cancer Research from the outset. That aim evolved into our investment, alongside Cancer Research UK, in the CRT Pioneer Fund. The same logic has given rise to this transaction, which will create a national champion of life science investing and accelerate the achievement of our aim: to win the
battle against cancer and to create great returns for our investors at the same time," said Tom Henderson, chief executive and founder of BACIT.
By Adam Clark; [email protected]
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