Br.small Co.2 Regulatory News (BSC)

4 Oct 2005 09:53

British Smaller Tech Cos VCT PLC04 October 2005 BRITISH SMALLER TECHNOLOGY COMPANIES VCT PLCBRITISH SMALLER TECHNOLOGY COMPANIES VCT 2 PLC 4 October 2005 The boards of British Smaller Technology Companies VCT Plc and British SmallerTechnology Companies VCT 2 Plc (the 'Boards') announce that they are indiscussion regarding the possible merger of their respective Companies, whoseinvestment advisers are YFM Private Equity Limited. This follows the introduction of the Venture Capital Trust (Winding Up andMergers) (Tax) Regulations in September 2004 permitting VCT mergers withoutloss of tax relief to either set of shareholders. The Boards believe that a merger would achieve a number of benefits includingreduced management and administration costs for the combined entity and anincrease in the range and diversity of the investment portfolio and hence animproved spread of risk. The respective Net Asset Values will be used as the basis for the merger. At this stage, there can be no certainty that a merger of the two VCTs will beeffected nor as to the terms on which any such merger might be effected. Afurther announcement will be made when appropriate. END For further information please contact British Smaller Technology Companies VCT plcBritish Smaller Technology Companies VCT 2 plcPhillip Cammerman Director 0113 294 5050 YFM Private Equity Limited David Hall Managing Director 0161 8327603David Gee Investment Director 0113 2945050 This information is provided by RNS The company news service from the London Stock Exchange