Foresight agrees merger with Keydata VCTs

27th Jan 2011 17:18

Foresight VCT has finalised its merger proposals with Keydata Income VCT 1 and Keydata Income VCT 2. The combined VCT will have net assets of more than £30m and it will expand Foresight's exposure to environmental infrastructure investments. The larger size of the VCT will make it more efficient and less costly. The two Keydata VCT's have annual running costs of £376,000 and more than £200,000 of those costs are likely to be saved. It will also be easier to afford to pay dividends. As part of the merger, the two Keydata VCT's will be placed in members' voluntary liquidation and their assets and liabilities transferred to Foresight VCT. The transaction is expected to be completed by 28 February. The shareholders of each VCT have to agree to the merger. The total cost of the merger will be £300,000. The exact terms of the deal will be based on the Keydata VCT's individual roll-over values on 24 February. There could be additional consideration payable relating to a biomass energy plant in Derby. The value of the transaction will not exceed £6.4m in total.