Baronsmead VCT 5 PLC Proposed Merger (9874G)
12 August 2016 - 2:30AM
UK Regulatory
TIDMBAV
RNS Number : 9874G
Baronsmead VCT 5 PLC
11 August 2016
Baronsmead VCT 5 plc
Proposed merger between Baronsmead Second Venture Trust plc and
Baronsmead VCT 5 plc (the "Companies")
Introduction
The boards of directors of both the Companies announce that they
have entered into discussions regarding a possible merger of the
Companies (the "Merger"). It is intended that the Merger would be
effected by way of a scheme of reconstruction under the Insolvency
Act 1986.
Benefits to shareholders
The boards of the Companies believe that a Merger would be in
the best interests of the shareholders of both Companies for the
following reasons.
-- It would result in estimated annual costs savings for the merged company of around GBP300,000 per annum.
-- It would remove the duplication of communication with the many shareholders that are common to both Companies.
-- It would create a larger merged company with net assets of approximately GBP200 million which would mean that the
merged company's shares would be more widely available on investment platforms and potentially make it more
attractive to private client wealth managers which may enhance the liquidity of the shares in the secondary
market.
The proposal
It is proposed that the Merger would be effected by way of a
scheme of reconstruction and the winding up of Baronsmead VCT 5 plc
under section 110 of the Insolvency Act 1986 (the "Scheme"). Under
the terms of the Scheme the assets of Baronsmead VCT 5 plc would be
transferred to Baronsmead Second Venture Trust plc (the "Merged
Company") in exchange for the issue of new shares in the Merged
Company to the shareholders of Baronsmead VCT 5 plc. It is proposed
that the costs of the Scheme are shared between the shareholders on
a fair basis to ensure that the benefits of the cost savings accrue
to all shareholders over the same time period.
Timing
The boards expect to write to their respective shareholders with
further details on the terms of the proposed Merger in mid October
2016. It is currently intended that, subject to shareholder
approval, the Merger would become effective in late November
2016.
For further information, please contact:
Michael Probin Investor Relations
Livingbridge VC LLP: 020 7506 5796
The information contained within this announcement is deemed by
the Companies to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014). Upon the
publication of this announcement via Regulatory Information Service
this inside information is now considered to be in the public
domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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