BlackRock acquired a significant stake in Swan Energy Ltd. for over US$37 million, causing a notable market reaction.
Swan Energy's shares have shown strong performance, increasing 35% in 2024 and 163% over the past year.
By Dicapriyo Simanungkalit, Kayla Putri Atmaja, Lefina Audia Juharsa, and Muchamad Raynald Ghazali
July 12, 2024 at 16:30 GMT+7
BlackRock, the world’s largest asset manager, acquired a stake in Swan Energy Ltd on Monday (7/8) through block deals. Swan Energy operates across textiles, real estate, energy, and petrochemicals.
The acquisition involved The BlackRock Emerging Frontiers Masters Fund Ltd and the BlackRock Global Funds India Fund, which acquired 0,78% and 0,58% stakes in Swan Energy, respectively.
The BlackRock Emerging Frontiers Master Fund Ltd purchased 2,458,000 shares at an average price of US$8 per share, while the BlackRock Global Funds India Fund acquired 1,820,000 shares at the same average price. Swan Energy’s shares will be in focus on Tuesday (7/9) following the acquisition.
The BlackRock logo outside their headquarters in Manhattan, New York | Source: Reuters
These strategic acquisitions of Swan Energy were done by three of BlackRock’s affiliates. These deals consist of BlackRock Emerging Frontiers Master Fund Ltd. acquiring 2.458 million shares at an average price of US$8.15 per share, adding up to approximately US$20 million in total.
In addition, BlackRock Global Funds India Fund acquired 1.82 million shares at the same price, totaling approximately US$14.85 million.
These transactions, along with an additional US$2.49 million worth of shares acquired by BlackRock Strategic Funds - BlackRock Asia Pacific Absolute Return Fund put the total acquisition to 4.556 million shares, making the total transaction just over US$37 million.
Petrochemical Plant | Source: Swan Energy
Transactions from BlackRock’s acquisition impacted the shares held by Swan Energy. This was due to significant turnovers by shareholders who sold their shares, including 2i Capital PCC, Dovetail India Fund, EOS Multi-Strategy Fund, Epitome Trading and Investments, and Paulomi Ketan Doshi.
By 1Q24, 2i Capital PCC and Dovetail India Fund held stakes in Swan Energy worth 1.9% and 1.39%, respectively. Amidst these events, Swan Energy showed strong market performance, with shares increasing 35% in 2024 alone, rising over 163% in the past 12 months, and ending in a 5% upper circuit at US$8.45.
Sources:
Business Standard
CNBC
MSN
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