The biggest director deal over the past week comes from FTSE 250 gold and silver miner Hochschild Mining (HOC), whose chairman and founder Eduardo Hochschild sold a huge chunk of stock.
Investment bank JP Morgan placed 61.7 million shares in the company at 200p each for Pelham Investment Corporation, Hochschild’s personal investment vehicle.
Following the share placing, which represents a 12% stake in the miner, Hochschild will own around 197 million shares, or 38% of the company’s issued share capital.
Shares in Hochschild Mining plunged more than 14% to 202.8p after the news today, with the placing price representing a 16% discount to the stock’s closing price on Wednesday.
‘MR HOCHSCHILD STILL COMMITTED’
The company said Hochschild remains committed to the business but believes ‘now is an appropriate moment to recycle some capital from his holding in the company to facilitate investments elsewhere across his existing businesses and in new opportunities.’
In a bid to reassure investors the miner added, ‘Mr Hochschild reiterates his firm belief in the company’s future and his confidence in the company’s current management team to continue delivering strong operating results as they have done this year in exceptionally challenging circumstances.
‘He believes the company’s growth strategy has the potential to create significant shareholder value and he looks forward to sharing in this value creation process with fellow shareholders with his significant remaining holding.’
Hochschild Mining also said the sale would increase the free float of the company and therefore enhance liquidity, ‘to the benefit of all shareholders.’
OTHER DIRECTOR DEALS
In other significant director deals over the past week Euan Fraser, the chief executive of fund management consultant Alpha FMC (AFM:AIM), sold over 924,000 shares at 230p each for a total of around £2.1 million.
Following the sale, Fraser owns around 563,000 shares, representing 0.55% of the company’s voting rights.
Gamma Communications (GAMA:AIM) non-executive director Andrew Stone has continued to sell down his stake in the business telecoms technology developer.
This week he sold 26,350 shares at £16.20 each for a total of just under £427,000. Stone has been selling his Gamma shares throughout the year, and in October made around £2 million from Gamma share sales.
For a full list of the week's most significant trades, click here.