View the article online at http://citywire.co.uk/money/article/a604640
Woodford takes 30% stake in biodegradable gum firm
Citywire A-rated Neil Woodford has bought around 30% of removable chewing gum firm Revolymer, following its AIM listing on 10 July.
Revolymer, which is a British polymer company developing degradable gum and products for consumer goods markets, issued more than 53,000,000 of ordinary shares after admission on the AIM market of the London Stock Exchange.
According to the shareholder report, Invesco Asset Management snapped up 16,049,000 ordinary shares, amounting to 30.27% of the issued share capital.
Subsidiaries of IP Group, in which Woodford is an investor, also bought into Revolymer, with IP2IPO buying 10.59% of issued share capital and IP Venture Fund buying 5.23%.
In an announcement posted on its website on 4 July IP Group said: ‘The admission of Revolymer to AIM will result in an unrealised fair value gain to IP Group of £0.2 million at the placing price.
‘IP Group and IP Venture Fund have committed £2.5 million and £0.35 million respectively to the placing.’
According to shareholder reports, Woodford’s Invesco Perpetual Income fund has 8.82% of IP Group, amounting to over 32,000,000 shares.
Revolymer has recently appointed Julian Heslop, the former chief financial officer of GlaxoSmithKline (GSK.L), as non-executive director. GSK also has Nicorette as one of its brands.
Jack Keenan, chairman of the firm, was formerly chief executive officer of Kraft Foods International and the business that is now Diageo (DGE.L).
One source told Citywire: ‘The board [of Revolymer] already has a heavyweight feel to that more akin to a FTSE company than an AIM company.’
Woodford invests in GlaxoSmithKline, with holdings in both his high income fund and income fund, at 1.28% and 1.02% of the company respectively.
Over three years, Woodford’s £7.3 billion Invesco Perpetual Income fund delivered 42.53% versus the FTSE All Share’s 36.14%.
The £9 billion Invesco High Income fund has returned 43.7% over this time, outperforming the same benchmark.
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by Daniel Grote on Sep 19, 2014 at 16:46