10th December 2015 - Baronsmead has announced that, subject to shareholder approval, they are planning to merge their VCTs 3 and 4 in February next year.
Following the changes to the limits on the amount of funding which investee companies can receive from VCTs, Baronmead say that having multiple funds is no longer commercially beneficial and they could save an estimated £300,000 per annum on costs post the merger.
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.
Baronsmead added that a larger merged VCT may also enhance the liquidity of the shares in the secondary market.
Under the proposals, the assets of Baronsmead VCT 4 would be transferred to Baronsmead VCT 3, in exchange for the issue of new shares in the merged company on a NAV for NAV basis.
Baronsmead will write to their respective shareholders with further details on the terms of the proposed merger in January 2016. Subject to shareholder approval, the merger would become effective in February next year.