Calculus and Neptune VCTs to merge

Calculus VCT issued an update to the market on Monday morning, confirming that its board had agreed in principle with the board of Neptune VCT to merge on a relative net asset basis.

The London-listed firms are both managed by Calculus Capital.

“Your board believes there will be significant benefits for all shareholders arising from the proposed merger with the Neptune VCT,” the update read.

“The merger, which will follow the methodology used in the majority of VCT mergers, will be effected by means of placing Neptune VCT into members' voluntary liquidation pursuant to Section 110 of IA 1986 and the acquisition by the company of all of Neptune VCT's assets and liabilities in consideration for the issue of consideration shares, forming an enlarged VCT.”

Calculus said the merger would be conditional on certain conditions being satisfied, which would be set out in circulars to be posted to the shareholders in both companies, along with a prospectus in connection with the merger.

Conditional upon the merger being effected, the company said it intended to seek further investment of up to £5m to be allotted in the 2017/18 and 2018/19 tax years, with an over-allotment option of a further £5m.