11th Nov 2015 16:23
LONDON (Alliance News) - Baronsmead VCT PLC and Baronsmead VCT 2 PLC on Wednesday said they are in talks over a possible merger in the wake of developments that have removed the "commercial advantage" of having multiple Baronsmead venture capital trusts.
"Changes to the limits on the amount of funding which investee companies can receive from VCTs have removed the commercial advantage of having multiple Baronsmead VCTs. In addition, the amount of stamp duty that would be payable as a result of a merger has reduced significantly over the past 18 months," the companies said.
The VCTs think the merged entity could saved about GBP300,000 per annum, remove duplication of communication, and create a larger company with net assets of about GBP170.0 million.
It is envisaged that the assets of Baronsmead VCT would be transferred to Baronsmead VCT 2.
The merger depends on shareholder approval.
Shares in Baronsmead VCT were down 0.5% at 72.26 pence on Wednesday afternoon, while shares in Baronsmead VCT 2 were untraded at 95.38p.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Baronsmead Vt