Rockwood Realisation plc
(“RKW” or the “Company”)
Shareholdings Update
The Board of RKW would like to inform the market that Gresham House plc (“GHE”), the parent company of its former investment manager, has notified the Company that it has sold its entire c.23.7% interest (being 602,866 ordinary shares) in RKW to a number of institutional investors, including RKW's current investment manager, Harwood Capital LLP (“Harwood”).
The Board has also been notified that Harwood now owns 28.9% of RKW's issued share capital having increased its shareholding from 9.19% by acquiring 500,577 ordinary shares in the Company. In addition, Richard Staveley, a senior member of the investment management team at Harwood tasked with managing RKW's investment portfolio, has acquired 18,000 RKW shares representing 0.7% of RKW's issued share capital, adding to his previous holding of 0.3% in RKW. Harwood and Mr Staveley are viewed as acting in concert and together their combined shareholding now totals 29.9% of RKW's issued share capital.
RKW previously traded as Gresham House Strategic plc (GHS). In December 2021, the name was changed to Rockwood Realisation plc and the investing policy of RKW was amended to place the Company into an extended run off with the view of realising the Company's investment portfolio over a two year period and returning the realisation proceeds to shareholders. Harwood has indicated to the Board that it believes that the investing policy does not operate in the best interests of RKW's shareholders and should be reviewed. The Board will therefore be engaging with Harwood, in its capacity as both the Company's investment manager and largest shareholder, to consider whether a change of investing policy is warranted. Shareholders should note that any change in such policy would need to be voted upon at a general meeting convened for that purpose.
The Board intends to make a further announcement concerning the future of RKW and its investing policy in due course.
RKW has also agreed to dispose of an investment in Hanover Co-Invest S.C.A. SICAV-RAIF Sub-Fund 1 (“Hanover Co-Invest”) that was made in mid-2021, to GHE or its nominees. This investment was acquired by RKW for £855,586 and GHE has agreed to acquire it for the same. By virtue of GHE having held a greater than a 10% shareholding in RKW within the last 12 months, this sale constitutes a related party transaction under the AIM Rule 13. RKW's Independent Directors, having consulted with the Company's Nominated Adviser, finnCap Limited, consider that the terms of the disposal of Hanover Co-Invest to GHE are fair and reasonable in so far as Shareholders are concerned.