Blue Sky Alternatives Access Fund (ASX: BAF) shares rose 6 per cent this morning after the company announced it had signed agreements to transition management to Wilson Asset Management (WAM).
Shareholders in the fund are expected to vote on the matter at an extraordinary general meeting (EGM) to be held in early September.
BAF is currently under the management of BSAAF Management Pty Ltd, a subsidiary of Blue Sky Alternative Investments (ASX: BLA) which is under administration.
The BAF board has long claimed the value of the fund's share price has been hampered by its association with the original Blue Sky fund.
The first major breakthrough to depart from its arrangement with BSAAF came in November last year, but negotiations to proceed were stalled by the outbreak of COVID-19.
Just over two weeks ago the terms of a deal were reached in principle, but the paperwork still needed to be worked out. Now that has been completed, leading to a deed of termination, a transitional services agreement and a deed of entry into a new investment management agreement.
"Today's milestone signals the beginning of a brighter future for BAF shareholders. The BAF Board once again thanks shareholders for their patience," says BAF chairman Michael Cottier (pictured).
"The Directors are delighted to have commenced this important transition, which, if approved by shareholders, will provide new and existing investors with access to a high-quality investment manager with significant expertise in successfully managing listed investment companies (LICs)."
Wilson Asset Management chairman Geoff Wilson says the renewed alternative asset-focused LIC has great potential in the Australian market.
"We look forward to welcoming over 3,300 BAF shareholders into the Wilson Asset Management Family," he says.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.