Partner Article

Share sale clears way for takeover

NORTH-EAST born biofuels giant D1 Oils could be set for a takeover after a disgraced activist investor sold a blocking stake in the firm.

Any takeover deal for struggling D1 - which was founded by North East entrepreneur Karl Watkin and at one time was headquartered in Middlesbrough – had been hindered by the 27.5% blocking stake held by Brian Myerson’s investment fund Principle Capital.

Mr Myerson was severely penalised this summer for involvement in a secret shareholder concert party.

Filings released after the stock exchanged closed last night showed Principle had sold its entire interest to a vehicle called Harrier Capital earlier in the day. It is believed this new shareholder may be connected to a potential bidder for D1.

The company, which specialises in making biofuel from the tropical oilseed-bearing Jatropha tree, had been in takeover discussions with at least two interested parties in the spring. One suitor — Mission NewEnergy — made an indicative share-based offer for the business, but it came to nothing when it became clear Myerson would block the deal.

This was posted in Bdaily's Members' News section by Ruth Mitchell .