Polygon, the hedge fund manager, today increased its stake to 24.9% in Teesland, the property fund manager which chairman Kevin McCabe is trying to take private.
Polygon is just shy of the 25% holding that would enable it to block resolutions put to shareholders by Teesland. It could, in theory, stop Teesland from going private in a £200m deal, but this is not thought to be its aim. It is understood to want to retain a significant minority stake in a private Teesland in the expectation that it will make a lot of money when McCabe sells Teesland on at a later date.
Shares in Teesland stand at 161p, which is slightly higher than McCabe’s 159.25p-a-share offer made through his Scamp vehicle.
Polygon and McCabe have yet to meet. Last Thursday McCabe turned up the heat on Polygon by announcing that Scamp had given notice to cancel significant contracts with Teesland that account for more than 10% of its revenue. Scamp also appointed four of Teesland’s executive directors as unpaid, non-executive directors of Scamp subsidiaries.