Steel magnate Laksmi Mittal's family trusts are exercising an option to acquire 10 million RAB Capital plc shares, taking their holdings in the quoted hedge funds company to just under 10 per cent.
Karrick Limited (Karrick), a Mittal family investment company, has given notice of its intention to exercise an option to acquire 10 million Ordinary RAB shares at GBP 1 each, for a total consideration of GBP 10 million, representing 1.8 per cent of the Company's enlarged issued share capital. The option was granted by an agreement between RAB and Karrick on 14 December 2006 which expired on 30 April 2007, when the notice was received.
The allotment of the shares and application for listing of the shares on AIM will take place shortly, and in any event is required within 14 days of the notice to exercise under the terms of the Option agreement.
As an indication, it is anticipated that the exercise of the option will take Karrick's total notifiable holding to 53,440,000 Ordinary shares, representing 9.8 per cent of the enlarged issued share capital. This is subject to further formal notification from Karrick under the Disclosure and Transparency Rules.
Alan Albert, of the Mittal family office said: 'The investment is a sign of our commitment and confidence in the future of RAB Capital.'
Michael Alen Buckley, Executive Chairman of RAB, said: 'The increased investment by the Mittal family is welcomed and supports the long term commitment of the RAB Board to broaden our business as we build new specialist fund management teams.'