Equilibria Capital Management has continued to build its holdings of Argus Group stock, taking its stake above a key threshold as the insurer seeks to make an unpopular acquisition.

The local investor now owns 27.20 per cent of Argus, up from 23.90 per cent, according to an announcement posted by the Bermuda Stock Exchange.

In a filing with the BSX, Argus Group Holdings Limited said it was providing written notice of the purchase of the securities.

The full filing stated: “It has come to our attention that the company’s shareholder, Equilibria Capital Management Limited, has acquired a beneficial interest in a sufficient number of securities of the company, so as to become a holder of 27.2 per cent of the company’s securities.”

Equilibria Capital was the largest shareholder before the recent increase and likely remains the largest shareholder, as no other shareholding changes have been announced since the last increase by Equilibria, which was disclosed in late July.

Argus has been one of the heaviest traded stocks on the BSX in recent months. Since the beginning of August, more than 10,000 shares changed hands on five trading days, with the peak of 60,900 on September 19.

The stock has traded as high as $6.20 a share over that period and has settled at $6.00, giving Argus a market capitalisation of $129 million.

Equilibria has been building its stake for some time.

In July 2020, it said it owned 11 per cent of the insurer, and by November that year, Equilibria had 12.5 per cent of the shares. In January 2021, the Equilibria stake was 15.36 per cent, and by June of that year, the fund had increased its stake to 17.12 per cent.

Equilibria’s increase comes as Argus seeks to acquire a large shareholding in BF&M, an industry rival.

In early June, Argus agreed to buy 36.9 per cent of the insurer from an existing shareholder for $100 million.

The purchase has been unpopular with some Bermudians, who are concerned about the lack of competition in healthcare, as Argus, which already controls 40 per cent of primary care in Bermuda, could become a dominant player in the provision of health insurance.

BF&M has resisted the Argus bid, putting a poison pill into place that would make the acquisition of the shares too costly, effectively ending the deal.

Equilibria has said it does not support Argus buying the stake in BF&M, saying in July that it was “unlikely” to support the bid.