THE Serious Fraud Office (SFO) has raided the Swansea office of Energist International as part of its criminal investigation into Merlin Biosciences, the venture capital firm run by Sir Christopher Evans.

Geoff Davies, chief executive of Energist, last night confirmed that the company had been visited by SFO investigators. Mr Davies told The Times: “We have no idea why the SFO would take an interest in the company. However, we are co-operating fully with its investigation.

“We can throw no light whatsoever on the allegations that have appeared in the media,” he added.

It is understood that investigators are interested in the circumstances surrounding a deal in August 2003, when Dennis Briaris and David George, two of Energist’s founders, sold a one-third stake in the business to Merlin Biosciences.

Mr Davies declined to say at what price the shares changed hands or at what level the transaction valued Energist.

It is believed that Merlin acquired the stake for the Merlin Biosciences Fund lll. The vehicle is one of three venture capital funds that are managed by Sir Christopher on behalf of investors in Europe and the UK.

According to Merlin’s website, the fund has made at least 11 investments of up to €10 million (£6.8 million) each, in a range of companies developing healthcare products.

Sir Christopher chairs the Energist board while Mark Clement, Merlin’s chief executive, serves as a non-executive director. The fledgeling healthcare company makes a range of pulsed light systems which are used by beauty salons in the removal of unwanted hair. The business generated a bottom-line profit of around £200,000 last year on sales of £7 million.

Dr Briaris and Mr George retain a two-thirds stake in Energist and are still involved in the business — the former as a non-executive director and the latter as technical director.

The SFO launched an inquiry into Merlin Biosciences earlier in the summer after receiving a complaint from a member of the public. It has since stepped up its interest in Merlin to a formal criminal investigation.

The SFO will only take on complaints that require specialist forensic accounting skills and involve sums of more than £1 million.

Sir Christopher is expected to meet SFO officials early next month.

Merlin strenuously denies any wrongdoing. The company has asked its lawyers to conduct an internal investigation in an effort to reassure investors that there has been no misappropriation of funds.

A spokesman for Merlin last night emphasised that the company was keen to co-operate with the SFO. “We are confident of our position and hopeful that the investigation will be resolved positively,” he said.

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