Betaville

A fund manager's gripe about "lock-ups"

A respected British fund manager gets in touch with little old Betaville to air his complaint about "lock-ups" that are supposed to restrict private equity firms and founding shareholders from selling their stock in companies that have recently floated on the London market.

Last week, private firm Inflexion sold some of its stake, around 8.8pc or 11.5 million shares, in short haul travel company On The Beach via stockbroker Numis. However, in March - when the private equity firm carried out a seperate share sale - Numis said there was a 90 day "lock-up" preventing Inflexion from selling shares after the March disposal.

And that March 2017 sale came after Inflexion entered into a 90 "lock-up" in December 2016 following the disposal of another lump of stock.

Here are the links:

http://www.investegate.co.uk/numis-securities-ltd/rns/proposed-accelerated-bookbuild-in-on-the-beach-plc/201705181635015932F/

http://www.investegate.co.uk/numis-securities-ltd/rns/proposed-accelerated-bookbuild-in-on-the-beach-plc/201703141644524695Z/

http://www.investegate.co.uk/numis-securities-ltd/rns/proposed-accelerated-bookbuild-in-on-the-beach-plc/201612151646060080S/

"Apprently, these "lock-ups" aren't worth the piece of paper they are written on so why bother having them," snipes the fund manager.

I suppose he may have a point.....