CSIRO halves GroPep investment
Tuesday, 15 June, 2004
The CSIRO -- formerly the largest shareholder in Adelaide-based biopharma GroPep (ASX:GRO) -- last week halved its shareholding in the company, selling 5 million shares valued at just under $3.5 million.
The sale reduces the CSIRO's GroPep shareholding from 19.82 per cent to 8.56 per cent.
"The decision to sell GroPep shares was part of a broader policy decision regarding the timing and construction of our equity portfolio," said CSIRO's commericalisation director, Nigel Poole.
"The CSIRO is not a long-term holder of equity. Its role is to conduct research. [The sale] was not a view on GroPep's performance or value or future performance. We're proud and delighted with the current progress and look forward and happy to step out at an appropriate time -- which this was thought to be."
GroPep's CFO, Tony Mitchell, said the sale would free up the company's share register and improve the liquidity of the stock "They haven't expressed any concerns, and they see it is a normal evolutionary process," he said.
Poole said that the CSIRO portfolio included more than 40 equity holdings. In addition to its remaining GroPep shares, it has investments in ASX-listed companies Ambri, Xceed Biotechnology, and Australian Magnesium Corporation.
In April, GroPep posted its fourth consecutive quarter of positive operating and net cash flow. Strong customer receipts of $4.2 million, plus operating cash payments of $2.8 million, swelled the company's cash holdings to $11.2 million at the end of the March quarter.
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