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Blue Sky Alternatives Access Fund (ASX: BAF) has finally resolved issues that were holding back a management change to Wilson Asset Management, but documentation still needs to be finalised before shareholders can vote on the move.
It has now been more than seven months since BAF reached an agreement to change managers, shaking off the shackles of current manager BSAAF - a subsidiary of parent company Blue Sky Alternative Investments (ASX: BLA) which has been in administration since mid-2019.
BAF shares have barely budged in response to today's announcement, likely due to investor caution after the group hailed a similar favourable negotiation of the exit from BSAAF in late February without much to show for it in the months that followed.
in February the fund had recently posted rapid revenue and profit growth for the first half, but with the outbreak of COVID-19 there was very little in the way of updates on negotiations save for the appointment of a new auditor - Pitcher Partners Sydney - to replace Ernst & Young in May, putting BAF more in alignment with Wilson.
Today BAF has announced it is progressing the long-form documentation with Wilson and BSAAF to effect the change in manager, based on in-principle terms reached in February and in discussions that followed.
"Regrettably, there has been a delay against the indicative timetable for the completion of long-form legal documentation referenced on 28 February 2020. This is partly due to impacts of COVID-19 on the parties' ability to progress the work," BAF said.
"However, it is also partly due to differences of understanding between BAF and BSAAF that emerged in relation to one aspect of the non-binding term sheet signed in February 2020, being the details of the treatment of different categories of fee rebates on the transition of management services away from BSAAF."
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The board has thanked shareholders for their patience, and notes issues that emerged over the past few months required re-opening certain aspects of the negotiations with BSAAF in order to resolve the differences between the parties before the overall transition proposal could be progressed and put to shareholders.
"After lengthy negotiations between the parties, the Board is pleased to say that these issues have now been resolved in principle on terms the Board considers acceptable to be put to shareholders," the company said.
"The parties are progressing the long-form documentation on the basis of the in-principle revised terms and the Board expects that the various parties will be able to agree, finalise and execute the longform legal documentation shortly.
"The Board will provide a further update to shareholders on the agreed terms and indicative timing upon execution of the long-form documents."
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