(Alliance News) - Harwood Capital LLP on Monday said it has purchased an additional 4.3 million shares in utility infrastructure and services firm Fulcrum Utility Services Ltd.
Fulcrum shares were untraded on Monday afternoon in London, last quoted at 25.90 pence each.
The fund manager said the recent purchase - under its tender offer to purchase a 24.1% stake, up to 53.5 million of Fulcrum's shares at 26.25p each - brings its total shareholding to 21.7 million shares, around 9.8% of Fulcrum's share capital.
Earlier in April, Fulcrum said 39.87% of shareholders rejected Harwood Capital LLP's tender offer and communicated their intention - through letters of intent - to oppose any resolution to cancel the admission of its shares to trading on London's AIM market if proposed by Harwood or Bayford Group.
It added that Harwood's tender offer is "opportunistic" and "significantly undervalues" the company as it advised shareholders to take no action nor to sell any shares to Harwood at or below the tender price.
In response, Harwood Capital said it believes the letters of intent referred to were from corporate broking firms holding Fulcrum shares in a nominee capacity for underlying beneficial holders, and therefore those beneficial holders are not bound by the letters of intent. It also stated that it believes its tender offer has resulted in a rise in Fulcrum's share price and the absence of the offer could result in a deterioration in the value of Fulcrum shares.
By Ife Taiwo; ifetaiwo@alliancenews.com
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