Orbis acquires 12 per cent of Acrux
Wednesday, 05 October, 2005
Bermuda-based investment manager Orbis Mutual Funds has acquired a 12 per cent stake in Melbourne-based drug delivery company Acrux (ASX:ACR).
The transaction boosts the holdings of institutional investors in Acrux's shares from 25 per cent to 37 per cent.
"It's a real sign of maturing of our share register, which goes alongside the maturing of the business," said Acrux CFO Jon Pilcher.
Orbis has acquired 16 million shares from three founding shareholders, following the expiry of a one year voluntary escrow arrangement associated with Acrux's initial public offering on the ASX.
"It reduces the founders holdings from 29 down to 17 per cent," said Pilcher. "These people are going to want to sell their shares at some time, and you certainly don't want it happening on the market gradually. So to be able to complete the sale of those shares off-market in a single transaction was very important to us."
The majority of the remaining founders' shares are in escrow until September 29, 2006.
Orbis' investment strategy is to find companies for which their intrinsic value hasn't been recognised by the market.
"That's their stated aim in investments, and we obviously agree with that in our case," said Pilcher.
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