The Blue Sky Alternatives Access Fund (ASX: BAF) has found a new manager in what has been described as a "significant breakthrough" for shareholders.
Following extensive discussions with a subsidiary of its current manager Blue Sky Alternative Investments (ASX: BLA), management rights will be transferred to Wilson Asset Management.
The transition is a long time coming for BAF, which has been held back by its connection with its parent currently in administration.
Two weeks ago BAF expressed concern about the "substantial disconnect" that exists between the current share market valuation and the underlying value of its assets.
The fund blamed its connection to Blue Sky on this lag, which "weighed heavily on sentiment towards BAF over the past eighteen months".
It appears as if discussions between Blue Sky and its receivers and managers Korda Mentha, Wilson Asset Management and Oaktree Capital have concluded today.
While this "consensus" has been reached, BAF notes that it is "not final and remains subject to further negotiation and conditions".
These conditions include documentation, the finalisation of some terms, the completion of certain diligence steps and the approval of BAF's shareholders.
"While there is still progress to be made towards having a binding proposal being put to BAF shareholders, the BAF directors regard the progress made to date as representing a significant breakthrough for BAF shareholders," says BAF.
Shares in the Alternatives Access Fund are up 3.43 per cent to $0.90 per share at 10.16am AEDT.
Read More: The rise and fall of Blue Sky: A timeline from ASX powerhouse to pariah
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support