BY SELLING a chunk of his shares not long before the company posted a steep drop in first-half profit, Gunns chairman John Gay has avoided paper losses of nearly $2 million.
Gunns' value has fallen $250 million since the day before its half-year accounts reported a 98.7 per cent drop in profit, and Mr Gay's share sale has tested the patience of major shareholders, reports The Australian Financial Review.
Investors Mutual sold down the day of the dismal profit result on February 22. Dimensional Fund Advisors sold down below the 5 per cent mark on Monday.
Mr Gay sold 3.4 million Gunns shares from December 2 to 7 for prices ranging from 92¢ to 88¢ apiece – an average price of 90.9¢.
The shares closed down 2¢ at 56¢ yesterday, their lowest since mid-December 2000. Had Mr Gay not sold, his Gunns shares would be worth about $1.9 million less.
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