For Forge Group stock, BlackRock emerges as a big buyer

For Forge Group stock, BlackRock emerges as a big buyer The world’s largest money manager, BlackRock, has emerged as a new substantial shareholder in embattled Australian mining services company Forge Group, helping in explaining a spike in the share price over the past fortnight.

BlackRock has built a stake in the shares of Forge Group, which rose for six consecutive trading days in between December 20 - 31, adding a total of 127.3 per cent, including a dramatic 54.6 per cent rise in a single day.

Forge Group released BlackRock’s new substantial shareholder disclosure statement before the market opened on Friday.

Mark Rankmore Forge Group head of operation services on Monday, denied takeover rumours, stating that people inside the company were looking at the register trying to figure out who is mopping up the stock. However David Simpson, the chief executive suggested the share price rally could be a sign that some investors were beginning to appreciate his threefold diversification strategy for the company.

The total number of Forge Group stock owned by a blend of four BlackRock funds based in Australia, the United Kingdom and the United States is now 4,586,071 shares.

At 1151 AEDT Forge shares were 6.58 per cent down at $1.42, against a benchmark index fall of 0.55 per cent.