Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to groundhog7,uspaul666,snowey,Howyoudoin,johnstevens77, for Donating to support the site

Mobeus mergers

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
sinterklaas
2 Lemon pips
Posts: 186
Joined: December 13th, 2016, 10:07 am
Has thanked: 86 times
Been thanked: 63 times

Mobeus mergers

#650016

Postby sinterklaas » February 28th, 2024, 5:53 pm

Presumably the influence of Gresham House, but I note the Mobeus VCTs are seeking to merge – pairing off and resulting in two fatter yet hopefully more streamlined VCTs…

https://www.londonstockexchange.com/new ... s/16353816

AndrewInDevon
2 Lemon pips
Posts: 123
Joined: April 10th, 2023, 6:02 pm
Has thanked: 34 times
Been thanked: 58 times

Re: Mobeus mergers

#650065

Postby AndrewInDevon » February 28th, 2024, 8:51 pm

Shouldn't the 2 British Smaller Companies Ltd (BSC and BSV) do the same...they now follow the same investment strategy but have double the overhead cost?

londoninvestor
2 Lemon pips
Posts: 153
Joined: May 12th, 2018, 6:35 pm
Has thanked: 152 times
Been thanked: 69 times

Re: Mobeus mergers

#650069

Postby londoninvestor » February 28th, 2024, 8:56 pm

AndrewInDevon wrote:Shouldn't the 2 British Smaller Companies Ltd (BSC and BSV) do the same...they now follow the same investment strategy but have double the overhead cost?


It's useful for investors to have 2 similar VCTs available: after 5 years, you can sell your holding in one, reinvest in the other, and claim the income tax relief on the reinvestment.

With only one VCT, you'd need to stay out for 6 months after the sale in order to get the relief on the reinvestment.

I guess this may be why Mobeus is consolidating 4 VCTs into 2, and not into a single entity. (If I remember a shareholder event from a few years ago correctly, Beringea mentioned it as a reason for not merging the two ProVens.)

AndrewInDevon
2 Lemon pips
Posts: 123
Joined: April 10th, 2023, 6:02 pm
Has thanked: 34 times
Been thanked: 58 times

Re: Mobeus mergers

#650160

Postby AndrewInDevon » February 29th, 2024, 10:15 am

londoninvestor wrote:
AndrewInDevon wrote:It's useful for investors to have 2 similar VCTs available: after 5 years, you can sell your holding in one, reinvest in the other, and claim the income tax relief on the reinvestment.


I never thought of that! But then I am new to VCTs....sounds like a plan! So sit tight for at least 5-years on the original investment then at the next BSC offer, sell one fund and buy the other to claim another 30% tax credit....assuming BSC are still performing OK in terms of dividends. Love the beauty of that!

londoninvestor
2 Lemon pips
Posts: 153
Joined: May 12th, 2018, 6:35 pm
Has thanked: 152 times
Been thanked: 69 times

Re: Mobeus mergers

#650167

Postby londoninvestor » February 29th, 2024, 10:34 am

AndrewInDevon wrote:
londoninvestor wrote:


I never thought of that! But then I am new to VCTs....sounds like a plan! So sit tight for at least 5-years on the original investment then at the next BSC offer, sell one fund and buy the other to claim another 30% tax credit....assuming BSC are still performing OK in terms of dividends. Love the beauty of that!


Right. In practice you don't quite get a 30% benefit compared to just holding onto what you had, because you sell the "old" VCT somewhere below its NAV, and you buy the "new" one at NAV plus offer costs. But many VCTs buy back from you at a 5-10% discount to NAV, so generally it's going to work out with a profit.

Kidman
Lemon Slice
Posts: 460
Joined: November 6th, 2016, 1:10 pm
Has thanked: 25 times
Been thanked: 147 times

Re: Mobeus mergers

#650574

Postby Kidman » March 1st, 2024, 5:37 pm

Another reason for not consolidating down to just one VCT is to allow larger investments.
As each VCT is limited in investment size by the rules, having two VCTs making similar investments allow a double size overall holding.

I have been informed that this is the reason that the two Baronsmead VCTs will not merge into one.
On the other hand I did wonder whether we could see a Baronsmead+Mobeus merger but supect that is now not the case.

cprof
Lemon Pip
Posts: 91
Joined: November 16th, 2016, 8:35 am
Has thanked: 34 times
Been thanked: 50 times

Re: Mobeus mergers

#668318

Postby cprof » June 10th, 2024, 4:48 pm

RNS out today, proposal to merge 4 into 2.

Kidman
Lemon Slice
Posts: 460
Joined: November 6th, 2016, 1:10 pm
Has thanked: 25 times
Been thanked: 147 times

Re: Mobeus mergers

#668402

Postby Kidman » June 11th, 2024, 10:00 am

A pity they aren't also merging the Baronsmeads into the resulting two Mobeus VCTs.
Greater spread of holdings and less administrative costs going forward.

sinterklaas
2 Lemon pips
Posts: 186
Joined: December 13th, 2016, 10:07 am
Has thanked: 86 times
Been thanked: 63 times

Re: Mobeus mergers

#668572

Postby sinterklaas » June 12th, 2024, 9:34 am

Kidman wrote:A pity they aren't also merging the Baronsmeads into the resulting two Mobeus VCTs.
Greater spread of holdings and less administrative costs going forward.


Not sure they need a greater spread… Aren't Baronsmeads already a 100+ holdings sprawl?

Snowbadger
Lemon Pip
Posts: 99
Joined: December 21st, 2016, 12:32 pm
Has thanked: 12 times
Been thanked: 74 times

Re: Mobeus mergers

#679215

Postby Snowbadger » August 12th, 2024, 2:54 pm

Hi All,

Just a heads up for anyone interested. Just received my new certificates together with notification of Mobeus fund raising from 9a.m. on Mon 2nd Sept.
No doubt after I have time to read the implications of the merger I may have questions. :D :D :D



SB

scotia
Lemon Quarter
Posts: 3610
Joined: November 4th, 2016, 8:43 pm
Has thanked: 2444 times
Been thanked: 1978 times

Re: Mobeus mergers

#679405

Postby scotia » August 13th, 2024, 2:39 pm

Snowbadger wrote:Hi All,

Just a heads up for anyone interested. Just received my new certificates together with notification of Mobeus fund raising from 9a.m. on Mon 2nd Sept.
No doubt after I have time to read the implications of the merger I may have questions. :D :D :D
SB

I find these mergers a nuisance - particularly since I have a number of (MIG4) certificates from DRIS purchases at various dates. So I now have these all replaced by a single IGV certificate with the current date. Now if I want to sell some of the shares in this certificate which have passed their (original) 5 year ownership, I need to unscramble the original certificate numbers, and request that the appropriate number are sold. Not impossible - but a nuisance.
My MIG4 and IGV VCTs have performed well, but we are winding down our VCTs to simplify our estates (old age :( )

Snowbadger
Lemon Pip
Posts: 99
Joined: December 21st, 2016, 12:32 pm
Has thanked: 12 times
Been thanked: 74 times

Re: Mobeus mergers

#679503

Postby Snowbadger » August 14th, 2024, 9:18 am

Agree Scotia that it is an admin nuisance but I'll accept that for such a stunning performer. I have never done DRIS for that reason. In my case I did the paperwork yesterday and clipped a note to remind myself how to deal with the issue in three years time when I sell them. If you check the aic site the merged VCTs are in the top six performers over 1yr and top two over five and ten years. What's not to like!

Regards,

SB


Return to “Venture Capital Trusts (VCT's)”

Who is online

Users browsing this forum: No registered users and 1 guest