Part 6Venture capital trusts
Chapter 6Supplementary and general
Acquisitions for restructuring purposes
327AF1Follow-on funding
1
Subsections (2) and (3) apply where—
a
this section applies (see section 326(1)),
b
the acquisition by the new company of all the old shares, which is provided for by the arrangements mentioned in section 326(1), takes place, and
c
the acquisition falls within section 326(2).
2
If, after the acquisition, another company makes an investment in the new company, section 280C (the permitted maximum age condition) has effect in relation to that investment as if—
a
in subsection (4)(a) the reference to a relevant investment having been made in the relevant company before the end of the initial investing period included a reference to a relevant investment having been made in the old company before the acquisition and before the end of the initial investing period, and
b
in subsection (6)(a) the reference to relevant investments made in the relevant company included a reference to relevant investments made in the old company before the acquisition.
3
In relation to any relevant holding issued by the new company after the acquisition, section 294A (the permitted company age requirement) has effect as if—
a
in subsection (3)(a) the reference to a relevant investment having been made in the relevant company before the end of the initial investing period included a reference to a relevant investment having been made in the old company before the acquisition and before the end of the initial investing period, and
b
in subsection (5)(a) the reference to relevant investments made in the relevant company included a reference to relevant investments made in the old company before the acquisition.
4
In subsection (3) “relevant holding” has the same meaning as in Chapter 4.