21 March 2017
Possible merger between Foresight 3 VCT plc ("F3") and Foresight 4 VCT plc ("F4") (together the "Companies")
Further to the recent announcements by the Companies in connection with the possible merger between F3 and F4 (the "Merger"), the boards of directors of the Companies are now pleased to announce that shareholders of both Companies have indicated their preference for the Merger to proceed.
It is intended the Merger will be effected pursuant to a scheme of reconstruction under s.110 of the Insolvency Act 1986 by transferring the assets and liabilities of F3 to F4 in consideration for new F4 shares to be issued to F3 shareholders on a relative net asset value basis. A merger solely on this basis would be outside the provisions of The City Code on Takeovers and Mergers. The proposed Merger will be subject to the approval of the shareholders of both Companies.
If the Merger proceeds it would be expected to achieve, amongst other things, significant cost savings and administration efficiency through the establishment of a single, enlarged VCT with net assets in excess of £70 million immediately following the Merger. In addition, it is expected that the enlarged VCT will have enough critical mass to generate sufficient income and realisations to meet an attractive dividend target, as well as maintaining a regular program of share buybacks aimed at maintaining a discount to NAV in the region of 10%.
For further information please contact:
Gary Fraser, Foresight Group: 0203 667 8100