The hold up is the Pooled Development Fund Act 1992, which limits a PDF to a maximum of 30% of its committed capital to an investee company. David told me MEC is currently sitting with 29% of its committed capital in Advent. Therefore it cannot take part in the Advent offer even if it had the funds to do so. The interest that MEC has in Advent will fall, while the interest BPH and GBA have will rise. I can see MEC and BPH having a fairly equal interest in Advent in the end. MEC is good for its PDF status, but not so good for this aspect.
Hopefully MMR comes off suspension, GBA relists and Advent IPOs for more opportunities. But I imagine MEC will have to grow significantly and diversify its investments to ever get a bigger stake in Advent again, or can it get around the PDF Act by investing via BPH and GBA, I don't know ???
25 PDF not to commit more than 30% of its committed capital to investee company
(1) Unless the Board otherwise approves, the investment must be such that, immediately after it is made, the total of:
(a) all amounts paid on the shares in the investee company held by the PDF; and
(b) all amounts remaining unpaid on those shares; and
(ba) all amounts the PDF has paid to acquire options in the investee company that the PDF has not yet exercised; and
(bb) all amounts the PDF has lent to the investee company that remain outstanding;
does not exceed 30% of the total of:
(c) the shareholders’ funds of the PDF; and
(d) all amounts remaining unpaid on the issued shares in the PDF.
(2) The Board must not give an approval under subsection (1) if the Board is satisfied that the investment is connected with a scheme or proposed scheme to which Part IVA of theIncome Tax Assessment Act 1936applies or would apply, as the case requires.
(3) An expression used in subsection (2) of this section and in Part IVA of theIncome Tax Assessment Act 1936has the same meaning in that subsection as it has in that Part.
(20min delay)