Sherwood Investment Overseas, an investment fund registered in the British Virgin Islands, has confirmed its previously stated interest in Rentech, Inc. by offering to buy the coal-to-liquid tech company, - but for the slashed price. The BVI fund sent a letter to Rentech informing about his wish to buy the company for $372.3 million, that is $2.28 per share.
According to the BVI investment fund, it already owns 5.3 million Rentech shares, or 3.2% of outstanding shares. Sherwood Investment Overseas Fund manages the money of an anonymous European family. The Los-Angeles company Rentech develops coal-to-liquid technology which turns coal into liquid fuel – a way to reduce dependency on foreign oil.
Previously Sherwood mentioned a higher offer that did not result in a deal. In November, the fund sent a letter to Rentech in which it said it "would be willing to put together a proposal at $2.70 per share to take the company private." Julian M. Benscher, the authorized signatory of Sherwood, told Forbes.com that the fund lowered its offer to reflect write-offs announced in the Rentech's quarterly earnings report. He also said that the BVI fund would finance a Rentech acquisition through a combination of its funds and other financing.
On Tuesday, Rentech closed with a market capitalization of $297.1 million. The question is whether Sherwood would be able to raise additional capital to fund Rentech's future projects, which estimate more than a billion dollars each.
The BVI fund Sherwood Investments Overseas is also trying to purchase Trans World Entertainment; in November the company announced a $7-per-share offer.
