Tungsten Corporation, the investment vehicle established by Duke Street Capital founder and chairman of the London pension Funds Authority Edi Truell, is set to list on London’s AIM market after identifying two investment opportunities, the FT has reported.
Tungsten is seeking to raise £160m to acquire electronic invoicing company OB10 from owners including Fleming Family & Partners and Axini Capital, as well as the UK unit of First International Bank of Israel.
The companies could be merge should the deals go through, the report said, creating the world’s “largest cloud based global trading network”
“We want to disrupt the supply-chain finance market,” Truell told the FT. “The opportunity to grow this is vast”.
Tungsten has previously been linked with deals for the Direct Line and Scottish Widows insurance businesses and troubled motor insurer Equity Red Star.
Tungsten was established by Edi and Danny Truell, who previously co-founded Pension Corporation. Danny is also currently CIO of medical research foundation Wellcome Trust.
Tungsten is targeting investments in the financial services sector following a period where “substantial volatility and liquidity constraints” have “exacerbated the financial instability of the European banking system and the European financial services sector”.
“Businesses within the financial services sector are taking voluntary steps to respond to the financial and economic crisis by strengthening their balance sheets, improving liquidity, remedying their regulatory capital positions, and exiting from non-core businesses and/or assets. Further factors driving these corporate actions include divestment programmes required as a European Commission condition to the receipt of state aid,” Tungsten said on its website
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