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Neil Woodford buys first unquoted stock for new fund

Neil Woodford buys first unquoted stock for new fund

by Dylan Lobo Jul 02, 2014 at 11:30

Neil Woodford has bought his first unquoted stock for his new equity income fund.

Woodford (pictured) has invested £5 million in telecoms firm Gigaclear through his CF Woodford Equity Income fund, which raised £1.6 billion in its offer period last month.

Gigaclear was founded in December 2010 by Matthew Hare. In May 2011 the firm took a majority stake in Rutland Telecom, and started to construct its first fibre to the premises network in the September of that year, which opened service in October 2011 in Hambleton in Rutland.

During 2012 Gigaclear delivered fibre to the premises services in the rural communities of Appleton, Eaton and Besselsleigh in Oxfordshire.

In 2013 four more fibre to the premises networks were completed in Uppingham (Rutland), Erbistock (Wales), Fyfield and Frilford (Oxfordshire).

Gigaclear now has three more fibre networks under construction due to open for service early in 2014 in Oxon and Kent.

The money raised from Woodford, along with an additional £2.8 million from private investors, will be used to build about 25 networks by end of year. The firm hopes to connect to connect to 10,000 homes by the end of the year in an acceleration of its rural broadband programme.

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Comments  (5)

  • Mike V: 

    This looks like 'insider dealing' to me. The company is small and although growing it's in a hugely competitive and predatory market.

    23:35 on 02 July 2014

  • Jaymak: 

    The company is not quoted on the Stock Market so the use of the words " insider dealing" are not applicable. Woodford and the other private investors referred to will, presumably, have looked very carefully into the company before making such a substantial investment

    17:32 on 03 July 2014

  • Mike V: 

    I put the comment 'insider dealing' in quotes for a reason, that being it looks/smells to me like 'he' knows the company on a 'personal' level. It seems too small to have attracted attention through the usual channels. Of course I could be wrong. Somebody please prove otherwise.

    21:38 on 03 July 2014

  • sloccy123: 

    I am sure Mr Woodford knows what he is doing- only time will tell whether it was a good decision-for now, i give him the benefit of any doubt.

    09:47 on 06 July 2014

  • JBAinCB: 

    "the use of the words " insider dealing" are not applicable" - this is semantics!

    Worse issue is that he buys and publicises his buys and that is self-fulfilling.

    And did he "puff" HSBC as " the bank" knowing he was about to sell ?

    18:06 on 04 September 2014

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