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Laxey increases offer for Spazio, fails to oust Hirco board members

London-based activist investor Laxey Partners has increased its offer for Spazio Investment, the Italian industrial property group, after its initial bid was rejected. Meanwhile Laxey has thrown in the towel in its fight to replace board members of Indian property group Hirco

Activist investor Laxey Partners has increased its bid for Italian industrial group Spazio Investment after having a previous bid rebuffed. The firm has also sold out of Indian property company Hirco after failing to oust its board members.

The London-based firm said today it had improved its bid for the share capital of AiM-listed industrial-focused firm Spazio Investment from €4.50 a share to €5.125 a share. This bid effectively values Spazio at approximately €141 million, up from its previous bid of €124 million made at the beginning of June.

According to a statement by Terra Catalyst Fund, an investment vehicle managed by Laxey Partners, the offer must be accepted by Friday.

Laxey’s previous offer was rejected before the weekend on the grounds that it significantly undervalued Spazio. The firm currently holds a 23.8 percent stake in Spazio, which is managed by Italian property group Pirelli Real Estate.

Shares in the firm increased in value by 4.7 percent to €4.80 a share reflecting a market capitalization of €132 million.

Meanwhile, Laxey’s attempt to remove the chairman and two board members at another AiM-listed company, the India focused real estate firm Hirco, was rejected at an extraordinary general meeting last week.

The failure to remove the board members was followed by Laxey’s sale of its stake in the company. The firm had tried to remove Niranjan Hiranandani and two other board members but failed as 60 percent of shareholder votes favoured the incumbent chairman. As a result Laxey sold its 11.63 percent position in the company to HSBC.