Thursday 29 September 2016

Blackrock and Lansdowne short Origin for almost €10m

Published 08/11/2015 | 02:30

Blackrock and Lansdowne are shorting agri-services group Origin Enterprises for a combined total of almost €10m
Blackrock and Lansdowne are shorting agri-services group Origin Enterprises for a combined total of almost €10m

Two major investment funds are shorting agri-services group Origin Enterprises for a combined total of almost €10m.

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Lansdowne Partners UK was shorting the company for €5.06m as of September 28 last, while Blackrock Investment Management had a short position of €4.37m as of November 4, according to Bloomberg data.

The move puts the spotlight on Origin's management at a time of significant change in the company.

Swiss-Irish frozen bakery company Aryzta, previously Origin's majority shareholder, recently sold out of the company entirely.

Origin itself sold out of Valeo Foods, which it founded with private equity firm CapVest, for €86.6m in July. The company also recently announced three acquisitions in Eastern Europe.

In Dublin, Origin shares were hovering around €6.85 on Friday, down from €8.50 a year ago. This month the shares are up from €6.45.

'Shorting' is a bet that the stock will fall. It involves selling shares that have been borrowed from a broker, before buying back the same number of shares later in the hope that the price paid will be lower than the price for which the first set of shares was sold.

Origin never comments on shareholder matters.

Sunday Indo Business

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