Baronsmead proposes VCT merger

Baronsmead is planning to merge its VCTs 3 and 4 in February next year, subject to shareholder approval.

The group said changes to the limits on the amount of funding which investee companies can receive from VCTs have removed the commercial advantage of having multiple funds. 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 boards of the companies believe a merger would result in estimated annual costs savings of around £300,000 per annum. It would create a larger merged company with net assets of approximately £150m, which would "potentially make it more attractive to private client wealth mana...