Albion Crown Regulatory News (CRWN)

8 Feb 2005 07:01

Murray VCT 3 PLC08 February 2005 Embargoed for: 07.00 a.m. 8 February 2005 Murray VCT 3 PLC and Close Venture Management The Board of Murray VCT 3 PLC is pleased to announce that Close VentureManagement has agreed to take over the management of the portfolio. The Boardalso announces that it has served notice terminating its management agreementwith Murray Johnstone Limited in six months' time, or earlier if agreement for ashorter notice period is reached with Murray Johnstone Limited. Similar announcements are being made at the same time by the Boards of MurrayVCT PLC, Murray VCT 2 PLC and Murray VCT 4 PLC. The Murray VCT Boards have each come to their decisions individually but each ofthe companies operate in accordance with a co-investment arrangement whichregulates the allocation of funds each invests in investee companies. More thantwo thirds of the investee companies in which the Murray VCT funds are investedare co-invested between two or more of the Murray VCT companies. The failed management buy out of part of the Aberdeen group's private equity andinvestment business by its senior executives, which was abruptly terminated atthe end of September 2004, caused each of the Murray VCT Boards (as they are inany event required to do) to review Murray Johnstone's performance and toconsider, as they should, alternatives available from other service providers. Given Close Venture Management's willingness to accept the appointment asmanager of each of the Murray VCT companies and to co-invest on a basis whichrelates to cash available across the whole of Close's venture capital trustportfolio, each of the Boards reached its own unanimous conclusion thatshareholders' interests would undoubtedly be best served by appointing CloseVenture Management to manage the Murray funds under the terms of a newco-investment agreement which will be implemented as soon as management of thefunds moves to the new manager. Details of the change of manager and of a special resolution of the Company tochange the name of the Company to Crown Place VCT 3 PLC will be circulated toshareholders in due course. Commenting upon the proposed change Peter Timms, Chairman of Murray VCT 3, said,"I am delighted that we have been able to secure the appointment of CloseVenture Management as manager of our funds. Close has an excellent reputationand its record as a manager of venture capital trusts speaks for itself. Themove to Close Venture Management will bring to an end a period of uncertaintyfor Murray VCT 3 and the board is confident the appointment should bringsignificant benefits in terms of shareholder value in the medium term". Patrick Reeve, Managing Director of Close Venture Management, added: "We werevery pleased to be asked to take over the management of the Company. CloseBrothers has a strong commitment to venture capital trusts and we look forwardto working with the Board to improve shareholder value." For further information please visit www.closeventures.co.uk or contact: Murray VCT 3 PLC Close Venture Management Tavistock CommunicationsPeter Timms Patrick Reeve/Emil Gigov John West /Chairman Managing Director/Director Clemmie CarrTel: 01700 504515 Tel: 020 7422 7830 Tel: 020 7920 3150 This information is provided by RNS The company news service from the London Stock Exchange