The boards of Keydata Income VCT 1 and 2 have hired Foresight Group as investment manager and administrator.
Foresight's appointment follows the announcement by the FSA on 9 June that Keydata had been placed into administration, although the VCTs were not subject to this ruling as they are considered separate entities.
Discussions will commence shortly regarding a possible merger of the VCTs with an existing Foresight vehicle, subject to shareholder approval.
It is likely any such merger would be effected through a scheme of arrangement under section 110 of the Insolvency Act 1986, which would be outside the remit of the Takeover Code.
Foresight was selected as investment manager of the Keydata Income VCTs because of its directly relevant experience in environmental infrastructure, where it already manages several funds.
Keydata's Income vehicles are the fourth and fifth new VCT mandates to be awarded to Foresight in less than five years.
The boards of the VCTs are aware of the need for a period of stability following recent events and believe the expertise and support provided by Foresight Group's investment management team are in the best interests of both the companies and shareholders.IFAonline
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