Octopus AIM VCT and Octopus AIM VCT 2 Explore Potential Merger
The boards of directors of Octopus AIM VCT plc (LSE:OOA) and Octopus AIM VCT 2 plc have entered into discussions regarding a possible merger. If agreed, the combination would involve transferring all assets and liabilities of Octopus AIM VCT 2 plc into Octopus AIM VCT plc in exchange for new shares based on each fund's relative net asset value.
The proposed combination aims to create a larger, more efficient venture capital trust focused on Alternative Investment Market companies. The boards expect the transaction to deliver cost synergies, improve operational efficiency, and support ongoing share liquidity while maintaining the existing investment strategy and VCT tax relief status.
If approved by shareholders of both funds, the transaction will proceed as a scheme of reconstruction under section 110 of the Insolvency Act 1986. Investors should watch for further updates on the negotiations. Meanwhile, the subscription offer for Octopus AIM VCT plc is scheduled to reopen in the week starting October 26, 2026, with plans for a new offer covering the 2026-27 and 2027-28 tax years following the merger.
Key points
- Octopus AIM VCT plc (LSE:OOA) and Octopus AIM VCT 2 plc are in discussions over a potential merger.
- The deal would combine assets into Octopus AIM VCT plc through a scheme of reconstruction under s.110 of the Insolvency Act 1986.
- The merger aims to lower operating costs, boost scale, and support liquidity while retaining existing investment strategies and tax status.
- Both funds require shareholder approval for the transaction to proceed.
- Octopus AIM VCT plc plans to reopen its subscription offer in the week of October 26, 2026.
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How we writeDisclaimerQuestions and answers
Are Octopus AIM VCT plc and Octopus AIM VCT 2 plc merging?
The boards of directors of both funds have entered into discussions regarding a possible merger, though an agreement has not yet been finalized and will require shareholder approval.
How would the proposed merger between the Octopus VCTs work?
The merger would be completed via a scheme of reconstruction where the assets and liabilities of Octopus AIM VCT 2 plc are transferred to Octopus AIM VCT plc in exchange for new shares based on relative net asset value.
Will the merger change the investment strategy or tax status?
No, the proposed merger is intended to preserve the existing investment strategy and VCT tax status while improving scale and reducing operating costs.