Channel Islands-based water infrastructure fund Aqua Resources Fund Limited (LON:H2O) said on Tuesday that the private equity arm of JPMorgan Asset Management had offered to buy more of its stock and raise its stake in it to as much as 29.9%.
Under the terms of the deal, which is subject to final terms being agreed with Aqua Resources Fund’s board, JPMorgan Private Equity Limited and JPMorgan Special Opportunities Fund, combining 15.7% in the target, want to buy additional up to 10.29m of its shares, or 14.2%, at USD0.35 (EUR0.28) apiece.
The price is 20.7% higher than Aqua Resources Fund’s closing price on 13 August, the target company said, adding that it had agreed that a tender offer be carried out for the required stock.
Aqua Resources Fund plans to delist its shares from the London stock exchange by the end of October 2012, as it no longer meets the free float norms of the UK listing, it said. The UK Listing Authority requires public companies to have 25% of its shares held by public shareholders.
The delisting needs regulatory clearance and and shareholders’ approval at their extraordinary meeting which would be held in September, the company said.
Aqua Resources Fund also amended its investment strategy to show it would make no new fund investments, it added.