Canadian merchant banking firm Pinetree Capital (TSX: PNP) will now have to satisfy local investment firms if it wants to take control of software company Bravura Solutions (ASX: BVS).
Bravura announced on 16 March that Pinetree had taken a 19.1% stake in the company.
Pinetree had started buying Bravura shares in February and then substantially increased its holding via an institutional placement and entitlement offer on 14 March.
Dutch funds management firm Stichting Bewwaarder also substantially increased its stake in Bravura, to 7.8%, on 14 March.
The following day, Spheria Asset Management increased its stake by 4.10% to 13.74%; Australian Ethical Investment increased its stake by more than 1% to 9.7%; Pinnacle Investment Management Group (ASX: PNI) took a 7.52% stake; and Firetrail Investment Management took a 6.9% stake.
The president and chief executive of Pinetree Capital is Damien Leonard. Pinetree specialises in small cap software company and special situations investing. Leonard has been managing director of a Toronto-based family office since 2011.
Bravura provides software and services to the financial sector. The company’s software is used in the administration of wrap platforms, superannuation, pension and retirement products.
Bravura was initially listed on the ASX in 2006 and was acquired by Ironbridge Capital and taken private in 2013. Ironbridge relisted the company in 2016.
The price of Bravura shares more than halved from around 70 cents in late February to 29 cents on 19 March. After the latest investments by local investment firms were announced, the shares rose to around 32 cents in intra-day trading on 21 March.