Marwyn Buys Gas Transport Business From National Grid

Investor Marwyn Investment Management LLP Thursday said it has bought a loss-making gas transport business from National Grid PLC (NG.LN) and intends to bring it to London's junior Alternative Investment Market with a GBP11 million fundraising.

Marwyn said it plans to turn the company around and re-establish it as a market leader in gas connections and transport.

Marwyn said its listed vehicle Marwyn Capital I Ltd. (MCIL.LN) bought Fulcrum Group Holdings Ltd. from National Grid for a nominal GBP10 in a reverse takeover.

Marwyn Capital I will be renamed Fulcrum Utility Services Ltd. when the deal goes through and it is admitted to AIM.

The enlarged company has agreed to raise GBP11 million in a share sale at 12 pence a share. The money will be used to fund its turnaround.

Gas industry veteran John Spellman has been named chief executive.

Shareholders in the enlarged group include insurer Legal & General Group PLC (LGEN.LN), utilities and energy investor Ecofin Water and Power and fund managers Artemis and F&C.

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [e-mail]