11th May 2020 14:06
(Alliance News) - Harwood Capital LLP on Monday said it has purchased 2.8 million further shares in Fulcrum Utility Services Ltd under its tender offer, taking its stake in the utility infrastructure and services firm to 11%.
Shares in Fulcrum were trading flat at 27.10 pence each on Monday afternoon in London.
Harwood Capital also slammed Fulcrum for refusing to distribute its tender offer documents to shareholders as it encouraged interested shareholders who wish to receive information to make direct contact.
In April, Fulcrum said 39.87% of shareholders rejected Harwood Capital LLP's tender offer to purchase a 24.1% stake, up to 53.5 million of Fulcrum's shares at 26.25 pence each, communicating their intention 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.
Following that, Fulcrum said it sent letters to shareholders requesting consent to share its shareholder register with Harwood Capital LLP. It stated that it was seeking consent to share the information in response to the fund manger's request for the register. It noted that Harwood has no legal right to the requested information and therefore Fulcrum owes a duty of confidentiality to its shareholders in relation to their information as held on the register.
However, Harwood on Tuesday, countered that it believes Fulcrum's refusal to directly distribute the tender offer documents presents the possibility that interested shareholders may not receive information of potential interest to them.
"Harwood does not believe it is in the best interests of Fulcrum shareholders to be frustrated in this way from a free flow of information of potential interest to them. Accordingly, Harwood would welcome and encourage all Fulcrum shareholders who wish to receive information to make direct contact with Harwood," the company said.
By Ife Taiwo; [email protected]
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