Some investors reduced their holdings in Instructure in uncertain future: deposits


BOSTON (Reuters) – Instructure Inc’s INST.N An uncertain future, clouded by a takeover offer that a few shareholders described as too cheap, prompted some investors to reduce their stakes in the American educational company in the last months of 2019.

William Oberndorf, who runs Oberndorf Enterprises, reduced his stake in the Salt Lake City-based company from 42% to 834,942 shares at the end of 2019, according to a regulatory brief released on Friday. Foxhaven Asset Management sold more than 2 million shares in the last quarter, reducing its 75% stake to 677,127 shares, according to its file.

And Jana Partners, an activist investment firm that often pushes management for changes like selling the business, liquidated her position. He sold 334,089 shares after buying them in the third quarter, according to his record.

Sachem Head Capital Management, who publicly asked Instructure to explore alternatives at the end of October, did not put Instructure on his record says 13F for the fourth quarter.

The asset managers filed their statements, showing the US stocks they held on December 31, 2019, Friday. They came as Instructure said it had accepted a higher offer from private equity firm Thoma Bravo, after some shareholders were reluctant to an initial takeover offer.

After Sachem Head launched his call to explore alternatives, it took Instructure’s board less than five weeks to say it would sell to Thoma Bravo for $ 47.60 a share, accepting an offer. which represented a 10% discount on the closing price of the company’s stock. But shareholders, including Oberndorf, have contacted the company to voice their concerns.

By the middle of this week, speculation was swirling that Instructure’s shareholders would vote against the deal and Thoma Bravo raised its offer twice. Instructure now plans to sell for $ 49 a share and give shareholders until Feb. 25 to vote.

Not all investors have signaled their nervousness about the company. Indeed, Praesidium Investment Management, Rivulet Capital and Lateef Investment Management, which had announced that they would vote against the agreement, increased their holdings in the last quarter. Praesidium increased its stake by 4% and Rivulet by 38% while Lateef increased its stake by 17%.

For some, the drop in Instructure’s stock price – it fell nearly 10% in the past three months to close at $ 47.60 on Friday – gave a chance to buy. P. Schoenfeld Asset Management now owns 415,000 shares while Farallon Capital Management owns 620,000 shares, their documents show.

Reporting by Svea Herbst-Bayliss; Editing by Tom Brown

About Marjorie C. Hudson

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