(Alliance News) - Harwood Capital LLP on Wednesday said it has purchased a further 4.5 million shares in Fulcrum Utility Services Ltd, taking its stake in the utility infrastructure and services firm to 7.9%.
The fund manager disputed an earlier statement made by Fulcrum, stating that 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.
Earlier on Wednesday, Fulcrum said 39.87% of shareholders rejected Harwood Capital LLP's tender offer to purchase a 24.1% stake 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.
The utility infrastructure and services firm said Harwood's tender offer for up to 53.5 million of Fulcrum's shares at 26.25 pence each 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 added 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.
"Harwood would like to draw shareholders' attention to the significant premium that the tender offer represents, in cash, in a period that Harwood believes will be one of prolonged market dislocation, with limited liquidity, including in the shares of Fulcrum. Harwood would encourage Fulcrum shareholders to sell their shares to Harwood now and/or to accept the premium tender offer once the formal tender offer document is posted," Harwood said.
Fulcrum shares closed 3.0% higher at 25.75p each on Wednesday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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