Trilogy International has attracted the interest of Australia's largest ethical investment fund which has lifted its stake in the scented candle and natural beauty products maker above 10 per cent.
Australian Ethical Investment increased its stake in Trilogy to 10.4 per cent from 9.4 per cent, the Melbourne-based fund said in a substantial shareholding notice to the NZX.
Demand for ethical investments has grown as consumers shun companies that don't heed the needs of the community, environment, animals or other issues, and seek out companies that support their values.
Australian Ethical Investment's ethical charter hasn't changed since 1986, saying it seeks out investments that support people, quality and sustainability and avoids investments that harm people, animals, society and the environment.
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Last year, its funds under management grew above A$2 billion ($2.2b) as it had record inflows of new members and funds.
Trilogy's businesses include its flagship rosehip oil skincare range Trilogy, scented candle maker Ecoya, skincare brand Lanocorp, and distribution business CS & Co and Australian Ethical Investment lists the investment under its "sustainable products" category.
Trilogy shares closed down 1c yesterday at $2.81.
In mid-December, Auckland-based Trilogy said it had entered a scheme of arrangement with Chinese investment manager CITIC Capital Partners to sell all shares in the company for $2.90 cash per share.
At the time, the directors said if the offer price per share is within or above the valuation range and no superior proposal arises, Trilogy's directors intend to recommend the deal and sell their shares.