Marlin boosted by Sciele stake sale

By KRIS HALL - The Dominion Post | Thursday, 04 September 2008

Offshore investment fund Marlin Global is set for a $1.8 million payday after agreeing to relinquish its 3 per cent stake in American takeover target Sciele Pharmaceuticals.

Japan-based Shionogi's US$31 (NZ$45) a share acquisition of Sciele represented a 61 per cent premium to the stock price and was an opportunity "too good to ignore for our investors", senior portfolio manager Ken Applegate said.

The takeover will provide a welcome boost to Fisher Funds' latest addition, which posted a net loss of $5.2 million for its first eight months to June after its launch coincided with the United States credit crisis and global market turmoil.

"Looking at the bigger picture, there are actually companies in the fund that have good, if not more compelling, growth and valuation than Sciele," Mr Applegate said.

Marlin, which currently invests in 30 growth stocks in the US, Europe and Asia, expects its Sciele holding to add at least 1.5 per cent to current net asset value (NAV) per ordinary share, which was 0.9487c as of August 31. "The [Sciele] offer certainly reinforces our belief that the market and investors are seeing value return to their companies. It's not all doom and gloom as some might suggest."

Shares in the listed fund rose 1c yesterday to close at 70c.