Chairman of JD Wheterspoon Tim Martin, has sold shares worth £50.3m to capitalise on the “significant buying interest” following the company placing last week.
On 26 January, Martin announced that he sold 4,370,000 of the company’s ordinary shares at a price of £11.50 per share. Taking his holding in the company to 21.88%.
In a regulatory update, Martin revealed he has agreed to a ‘lock up arrangement’ on his remaining shareholding that runs until the release of the announcement of the company’s results for the 52 weeks to 25 July 2021 – which is expected to take place in September 2021.
Last week the pub group announced that it was raising capital through its investors via an accelerated share placing of over £90m.
At the time a total of 8,370,000 new ordinary shares were placed on the exchange by Investec Bank at a price of 1,120p per share, bringing the overall investment level to £93.7m.
It has been reported that the pub chain has received almost £50m through the government’s Covid-19 loan scheme, and has submitted an application to double the state-funded support.
Earlier this month the company revealed that its liquidity stood at £139m, with net debt totalling £1.1bn.