Pure Wafer (AIM:PUR) – Look out, proposed disposal will impact IHT status!
The AIM quoted provider of silicon wafer reclaim services that has been mulling over what to do with its large cash pile, accumulated following an insurance payout, has announced that it has agreed terms for the proposed sale of its wholly owned subsidiary, Pure Wafer Inc. The disposal could dramatically impact those investors holding the shares for inheritance tax planning purposes; we consider things further.
The Group has confirmed that: “Disposal will result in a fundamental change to the business of the Company and is conditional upon, amongst other things, the approval of Shareholders under the AIM Rules. The Disposal will also result in the disposal of substantially all of the trading business, activities and assets of the Company and as a result, upon completion of the Disposal, the Company will be treated as an investing company for the purposes of the AIM Rules.” Accordingly, as an investment company the shares will no longer qualify for inheritance tax planning purposes. The total price payable to…