The directors of the Victory venture capital trust (VCT) and Amati VCT 2 have entered discussions about a possible merger of the two.

The directors of the Amati VCT 2 will put forward proposals at the company's next general meeting.

The merger and an enhanced share buyback are thought to be a more attractive option than the liquidation of the VCT.

According to directors, the merger would create a larger asset base, 'with increased efficiencies and an improved spread of risk'.

The closed-end funds are both managed by Amati Global Investors, using the same processes and portfolio construction approach.

The merger will only go ahead if it receives backing from the investors of both VCTs.

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