Acacia Research offloads bargain Woodford stocks
The US buyer that snapped up cut-price assets from Woodford’s failed Equity Income fund has offloaded the stocks just days after the deal.
Acacia Research has started to sell some of the assets it agreed to buy earlier this month. In one instance, the US firm generated a profit of £750,000 from a sale of one asset, according to regulatory filings first reported by Citywire.
A fortnight ago, it was revealed that Acacia Research would buy up to 19 of the former Woodford fund’s biotech stocks in a £224m deal. The California-based firm, which specialises in intellectual property and patent licensing, agreed the deal with administrator Link Fund Solutions.
The deal comes a year after Woodford suspended the Equity Income fund following a surge in redemptions, sparking the industry’s biggest crisis in years. Link removed the star stockpicker as manager last October.
Filings show eight stocks from the former Woodford fund have been transferred to Acacia. Citywire has estimated the stocks are worth up to £150m, and Acacia has subsequently raised approximately £128m.
One filing discloses that the Californian company bought a 9.9 per cent stake in Midatech Pharma for around £65,000, less than 1.7p a share from the fund. It was then sold on five days later at 21p a share in a deal worth £817,000.
SEC filings also indicate Acacia sold an 11.7 per cent stake in Evofem for $29.3m a few days after buying the stocks.
The documents seen by Citywire show investors in the Woodford fund face further delays in receiving money. Both buyer and seller are reportedly working towards a deadline of 30 November but they can agree to a one-month extension. It means investors frozen in the fund could be waiting until Christmas before receiving the proceeds.
Link Fund Solutions declined to comment.