Hansen family cuts stake in company with discount sale
The Hansen family's grip on its billing services company, which supplies energy utilities and telecommunications companies, was cut from 60 per cent to 44 per cent. The shares were sold at 85¢, compared with around 91¢ in the market.
The last time the family sold was in 2011 at 93¢ apiece, which basically sums up the performance of the stock during the past couple of years, a roughly steady price.
The shares wowed punters three of four years ago when they moved from under 30¢ to above $1, but earnings declined a shade in 2012 and fell 46 per cent in the December half.
Elsewhere, six of the eight-person Codan board ventured into the market following a 49 per cent slashing of the scrip after an earnings downgrade.
Chief executive and MD Donald McGurk said: "We took advice from our lawyers regarding the opportunity for us to buy some shares, given that the downgrade that we issued to the market a few days earlier seemed to attract some pretty negative sentiment. We believe the story.
"I think they've focused on the negatives. We'll still come out with a $45 million profit, which is twice last year's and, sure, we've had a bit of a slowdown in the last month or so, but we don't think that after one or two months we're now all of a sudden in possession of a bad business.
"We believe the fundamentals of our business are still as strong as ever."
Frequently Asked Questions about this Article…
The Hansen family reduced its holding in Hansen Technologies from 60% to 44% by selling shares at 85¢ each, while the market price at the time was around 91¢. The article notes this sale followed the family's last disposal in 2011 when shares were sold at 93¢.
The article reports the shares were sold at a discount (85¢ versus about 91¢ in the market) but does not provide a specific reason for the discounted sale. No stated motive or explanation for the decision appears in the article.
According to the article, Hansen shares rose from under 30¢ to above $1 a few years ago and have been roughly steady since. However, earnings declined slightly in 2012 and fell 46% in the December half, which helps explain recent volatility in sentiment.
Yes. The family's stake fell from 60% to 44%, meaning they no longer hold a majority (over 50%) of the company. That reduction reduces their controlling grip on Hansen Technologies.
After Codan's scrip was slashed by 49% following an earnings downgrade, six of the eight-person Codan board bought shares in the market, according to the article.
Donald McGurk said the board took legal advice before buying and that they "believe the story." He suggested the market had focused on negatives, highlighted that Codan expects a $45 million profit (about twice last year's), and argued the company’s fundamentals remain strong despite a short slowdown.
Based on the article, these actions show differing insider behaviours: the Hansen family chose to reduce stock exposure at a modest discount, while Codan’s board bought shares after a downgrade, signalling confidence from management. Both moves are public signals investors can note alongside the companies’ earnings trends and commentary.
Key takeaways in the article are: the Hansen family trimmed its Hansen Technologies holding from 60% to 44% via a sale at 85¢ (market ~91¢); Hansen’s earnings have weakened, including a 46% fall in the December half; and after a significant cut to Codan’s share price following an earnings downgrade, most of Codan’s board bought shares and management said it expects around $45 million profit and believes the business fundamentals are strong.
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