Lakshmi
Mittal becomes a major investor in RAB Capital
London, June 23, 2005
PTI
NRI steel magnate Lakshmi Mittal has become
a major investor in RAB capital, a pan-European fund
management and investment firm, with a singular primary
focus on hedge funds.
The Mittal family bought a 4.48 per cent stake in
RAB after the company's two founders raised a combined
25 million pounds from selling shares.
The Mittals were among 14 buyers of the shares, but
only one other party was named - Sofina, the Belgian
company controlled by the Solvay family, which is
one of Europe's wealthiest dynasties, bought a 5.5
per cent share.
Backing from such high profile investors represented
a coup for RAB, which has made its name by being a
prolific backer of small mining and energy stocks.
It said two other billionaire family trusts were among
yesterday's investors.
Co-founders Philip Richards and Michael Alen-Buckley
each netted 12.5 million pounds by selling stakes
of 6.22 per cent; they still retain interests of 31.1
per cent.
Richards, who was paid 5.4 million pounds as chief
executive last year, said the disposals were part
of RAB's progress to "becoming a real company."
"You make companies that are long lasting and
self- sustaining by broadening them out in all senses,"
he said.
"We have been broadening the range of our funds
and we are now broadening our share-holder base.
"Having a listed company in which 80 per cent
was in the hands of two people was not sustainable
in the long-term."
NRI Mittal and Solvay families are both investors
in RAB funds.
