Sibanthracite Plc pulled out its initial offering (IPO) causing losses for GLG Partners Inc. this was after its former fund manager Greg Coffey blew a bet with Sibanthracite.
Last July 12, two people familiar with the matter said that GLG looked to raise as much as US$214 million. This was by means of launching an initial public offering for 25% stake in the company. The GLG Emerging Markets Growth Fund was acquired by Coffey. Currently, it is a part of the Man Group Plc, a London based firm. It sought to find an industrial buyer for the company's holding and is also its biggest asset.
In April 2008, Greg Coffey resigned from the company after a run of gains that made him one of the world's best paid fund managers. The investment was one of his last prior to his resignation. After his resignation, investors were left with a stake in the coal mine as the assets became difficult to sell. It was moved to a segregated fund that barred investors' redemption. GLG tried to publicly launch Sibanthracite as concerns regarding China's slowed economic growth tumbled coal prices.
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