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Claus Moller’s P2 Capital Partners Updates Its UTi Worldwide Inc. (UTIW) Filing

An earlier version of this article mistakenly concluded that Claus Moller‘s P2 Capital Partners has started reducing its stake in UTi Worldwide Inc. (NASDAQ:UTIW) stock? Upon close examination, we noticed that the fund just updated the filing using the latest share count. Here is what the filing said:

“As of the close of business on September 8, 2014, each of the Manager and Mr. Moller may be deemed to beneficially own 23,690,191 Shares of Common Stock, in the aggregate, which represented approximately 19.99% of the outstanding Shares (taking into account, as outstanding Shares, all 7.00% Convertible Preference Shares as if they were converted in full on the date hereof). All percentages set forth in this paragraph with respect to Master Fund I, Master Fund V, Master Fund VI and Master Fund VIII are based on 105,449,846 Shares of Common Stock outstanding (as of September 3, 2014), which number of Shares of Common Stock is based upon the Issuer’s Report on Form 10-Q filed on September 8, 2014 for the fiscal quarter ended July 31, 2014.  The percentages set forth in this paragraph with respect to Master Fund X, the Manager and Mr. Moller are based on 118,510,208 Shares of Common Stock, which represents the 105,449,846 Shares of Common Stock outstanding (as of September 3, 2014) plus the 13,060,362 Shares of Common Stock, which is the maximum number of Shares of Common Stock into which the 7.00 Convertible Preference Shares owned by Master Fund X could be converted if such 7.00% Convertible Preference Shares were converted in full on the date of this filing.

The number of Shares of Common Stock reported as beneficially owned by the Manager and Mr. Moller is 23,690,191 (i.e., 19.99% of 118,510,208) due to certain limitations set forth in sections 12.3, 12.6 and 12.21 of the Amended and Restated Memorandum of Association of the Issuer (see exhibit 3.1 to the Issuer’s 8-K filed March 3, 2014).  These provisions limit the voting discretion of the Manager, Master Fund X and their affiliates to, and prohibit any conversion that would result in beneficial ownership of such entities exceeding, 19.99% of the outstanding Shares (taking into account all 7.00% Convertible Preference Shares as if they were converted in full on the date hereof) (collectively, the “19.99% Limitations”). Absent the 19.99% Limitations, the number of Shares reported as beneficially owned by the Manager and Mr. Moller would be greater than 23,690,191. The purpose of this Amendment is to correct the number of Shares of Common Stock (and the percentage of the outstanding Shares) reported as beneficially owned by the Manager and Mr. Moller in Amendment No. 5 to the Schedule 13D, filed August 4, 2014, in which the 19.99% Limitations were not taken into account. The number of Shares of Common Stock reported as beneficially owned by the Manager and Mr. Moller in Amendment No. 5 should have been 23,632,952 (i.e., 19.99% of the outstanding Shares as of such date), rather than 24,108,950 (i.e., 20.4% of the outstanding Shares as of such date).”

UTi Worldwide Inc. (NASDAQ:UTIW)

Chuck Royce sold his stake in UTi Worldwide Inc. (NASDAQ:UTIW) by 7% during the second quarter of 2014. Royce & Associates has reported ownership of 6.48 million shares valued at $67 million in its latest 13F filing. Chase Coleman and Feroz Dewan, the managers of Tiger Global Management LLC, believe the stock still has room to grow and have boosted their stake in UTi Worldwide Inc. (NASDAQ:UTIW) by 5% to amass 5.13 million shares worth in excess of $53 million. Joel Ramin is also keeping tabs on the company with his fund, 12 West Capital Management, holding 5.03 million shares valued at $52 million.

A logistics and distribution company, UTi Worldwide Inc. (NASDAQ:UTIW) has a market cap of $1.18 billion, as the stock has plummeted from the $17.7 high at the end of 2013. Shares are currently traded $11.21 and carry a forward Price to Earnings (P/E) ratio of 32.88. For the three months ending July 31, 2014, UTi Worldwide Inc. (NASDAQ:UTIW) have disclosed revenues of $1.09 billion and a loss per share of $0.15. Analysts expect the company to move back into green territory, as they eye earnings of $0.05 per share and revenues of $1.17 billion for the current quarter.

Although UTi Worldwide Inc. (NASDAQ:UTIW) is P2 Capital Partners’ biggest equity investment, Moller is also a fan of on Blount International Inc (NYSE:BLT). During the second quarter of 2014, no changes to P2 Capital’s position have been made, so the fund continues to hold 7.37 million shares worth in excess of $104 million. Moller has decided to start offloading PTC Inc (NASDAQ:PTC) shares and has reduced his fund’s position by approximately a quarter. P2 Capital currently holds 1.63 million shares valued at $63.5 million.

Disclosure: none.

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