John Gay sold out his stake in Gunns 3 weeks ago?
No, actually, he didn’t. The entry that follows today was posted at pace, given the apparent significance of the information and solid support for the conclusion. Wrong and wrong. Given the opportunity to further research this matter tonight, and the advice of a particularly good journo with experience in the financial sector – this seems to not seem to be what it seems to be. I am leaving the article as is for posterity’s sake, but the apparent disappearance of John Gay from the list of substantial shareholders actually is just that. With an additional 15 million shares recently released as part of Gunns voracious appetite for cash-money, there are more Gunns shares in the world. Gay’s holding has not decreased substantively, but has decreased relatively. When a holding slips below 5% of outstanding shares, the holder is no longer substantial and the listing vanishes until they but more and again break that magical 5% mark…. And now, laugh at history:
I think that this is significant breaking news regarding the proposed pulp mill in Tasmania. I may well have missed some media coverage, maybe this was all pre-ordained by contractual agreements or obligations, but please read on and correct me via comments if you happen to know better.
At some point between August 31, 2006 and June 21, 2007 – despite the fact that they are tickets to Paradise if the pulp mill happens and turns out to be all that is *ahem* promised – Gunns chief John Gay has offloaded over 17.8 million shares which he personally held in the company. He has effectively reduced his stake in Gunns Ltd from 5.27% to 0.0% as of June 21, 2007.
As far as coverage of Gunns-related current affairs-trauma is concerned, Matthew Denholm continues to be outstanding. The fact that he makes no mention of Gay’s offload in this piece written on June 23 makes me think that either this strange manouevre has not been covered or has been deemed unworthy of attention.
This may be the most legitimate transaction in the whole Pulp Mill Assprovement process. But still… it seems a very strange move for a director with any faith in their product to make. Selling out because the shares are about to tank and then buying back in on a double-stake would also be too blatant for the bloke pulling the levers to even consider.
I think that this is truly an almighty forests/ environment/ economics/ pulp mill/ Gunns/ current affair/ media silence WTF. Does anybody know why Gay happens to have offloaded at this point in time and why this isn’t a significant piece in a bigger Tasmanian picture?