Private equity, debt management and turnaround investment group 3i has reassured investors after two companies acquiring its shares led to a fluctuating share price throughout January.
Today, the board reassured shareholders that the share price movement throughout the month was the result of trading predominantly between two companies – Sherborne Investors and Jefferies International (Nominees) Limited.
In November 2012, Sherborne Investors confirmed its intention to conduct a fund raising exercise to invest in ‘a company’ which it considered to be undervalued. The company subsequently raised £207 million.
According to the stock exchange announcement, the company advised the media at the beginning of January that it intended to use the majority of the cash to buy up to 30% of one target.
By the close of business on 15 January 2013, Sherborne had acquired 0.7% of 3i’s total issued share capital which it then sold to Jefferies. Jefferies had subsequently acquired additional shares, taking the total stake-holding to 1.6%.
Jefferies International Limited is a nominated adviser and broker to Sherborne Investors (Guernsey) B Limited – an investment vehicle of Sherborne.
3i invests primarily in mid-market companies with an enterprise value up to €500m for either majority or minority stake, across Europe, Asia and the Americas. It also invests in senior and sub-ordinated corporate debt.