IN BRIEF: Octopus AIM VCT and VCT 2 announce merger talks

Octopus AIM VCT PLC and Octopus AIM VCT 2 PLC - venture capital trusts - Enter discussions regarding a possible merger. Says this would be "intended to create a larger and more efficient AIM-focused VCT with greater scale and deliver cost synergies". Their boards believe such "synergies" would benefit existing and prospective shareholders. Also, AIM VCT says it intends to launch a new offer for subscription in respect of the 2026-27 and 2027-28 tax years, following the merger. The merger would be completed through a scheme of reconstruction, with smallest party AIM VCT 2's assets and liabilities being transferred to AIM VCT. AIM VCT 2 shareholders would receive new shares in AIM VCT as consideration.

"The boards believe that combining the two entities should enhance operational efficiency and support continued liquidity together with providing a stronger platform for long-term shareholder returns while preserving the existing investment strategy and VCT tax status," the companies state.

Octopus AIM VCT current stock price: 38.00 pence

12-month change: down 15%

Octopus AIM VCT 2 current stock price: 30.70p

12-month change: down 13%

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