Sirtex in play as founder sells up
A block of 7.27 million Sirtex shares was sold at $12 each late on Tuesday, a slight discount to the market price. Sirtex closed Wednesday down 10¢ at $12.35.
The block of shares traded on Tuesday was equal to 12.9 per cent of the company's capital, and raised $87.24 million for Dr Gray.
Dr Gray has been involved in a dispute with the Sirtex board over the way the company has been managed, and he has been gradually selling down his holding over the past six months, taking advantage of an upswing in the share price as it prepares for greater penetration of its cancer treatment in offshore markets.
The sale by Dr Gray opens the door for a possible takeover of the company since the only other large holder, fund manager Hunter Hall has also been selling down its stake. It retains an 18.7 per cent holding in Sirtex.
Frequently Asked Questions about this Article…
Bruce Gray, founder of Sirtex Medical, sold most of his holding in a block trade of 7.27 million Sirtex shares at $12 each, a sale equal to 12.9% of the company’s capital and which raised $87.24 million for him.
Following the block sale, Sirtex shares closed down 10 cents at $12.35. The block was sold at a slight discount to the market price.
The article says Dr Gray has been gradually selling down his holding over the past six months amid a dispute with the Sirtex board about company management and has been taking advantage of an upswing in the share price as Sirtex prepares for greater offshore penetration of its cancer treatment.
Yes. The sale opens the door for a possible takeover because it reduced a major long-term holder’s stake, and the article notes the only other large holder, fund manager Hunter Hall, has also been selling down its position.
Hunter Hall is a fund manager that the article says has been selling down its Sirtex stake but still retains an 18.7% holding in the company.
Dr Gray raised $87.24 million from selling 7.27 million shares at $12 each, which represented 12.9% of Sirtex’s capital.
Investors should watch for takeover speculation, any further large shareholder moves (such as additional selling by major holders), official company announcements about board or strategy changes, and share price volatility following the sale.
The article highlights a dispute between Dr Gray and the board over management and notes he has been selling into a share price upswing as Sirtex prepares for greater offshore penetration of its cancer treatment. It does not provide evidence that the underlying business or growth prospects are definitively impaired.
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