Domino's director take away

Nov 16, 2009

Share with
friends:

Comments (0) Print this article

Domino's Pizza directors have offloaded shares ahead of a tender offer by the company. The directors have sold at 310p a share whereas the tender offer is at 317p a share. Domino's intends to buy back 6m shares for £19m.

The directors have sold nearly as many shares as Domino's is tendering for. All the disposals happened after the tender was announced.

Founder and non-executive vice chairman Colin Halpern has been a consistent seller for more than a year. The latest share sale is by a related trust where his children are beneficiaries.

Halpern sold 2.5m shares at 210p each in February and 500,000 shares at 205p each in May. Those sales raised £6.275m. In August 2008 he sold 2.3m shares at 180p each which raised £4.14m.

Halpern and related trusts retain nearly 5.2m shares, which is 3.18% of the company.

Executive chairman Stephen Hemsley, chief executive Christopher Moore and non-executive Nigel Wray have also been reducing their stakes. Hemsley retains a 2.57% stake, Moore owns 1.6% and Wray remains the company's biggest shareholder with a 15.9% shareholding.

Shareholders can tender some or all of their shares but only 6m will be acquired. Excess applications will be scaled back if the tender proves popular. The latest tender will increase the amount spent by Domino's on share buy backs to more than £50m.

Management says that trading remains strong at the fast food retailer.

Charles Stanley maintains its target price of 365p a share but downgrades from buy to add. The broker forecasts 2009 profits of £28.2m. Forecasts were upgraded after a recent trading statement.

The share disposals did not hit the share price which ended the day 5.8p higher at 332.8p.

Top Director Buys

Beazley Group (BEZ) Director name: Mr Padraic O'Connor Amount purchased: 30,000 @ 107.81p Value: £32,343

Resolution (RSL) Director name: Mr Gerhard Roggemann Amount purchased: 30,000 @ 96.21p Value: £28,863

Top Director Sells

Domino's Pizza UK & IRL (DOM) Director name: Mr Colin Halpern Amount sold: 2,308,975 @ 310.00p Value: £7,157,822

Domino's Pizza UK & IRL (DOM) Director name: Mr Stephen Hemsley Amount sold: 1,845,789 @ 310.00p Value: £5,721,946

Domino's Pizza UK & IRL (DOM) Director name: Mr Nigel Wray Amount sold: 1,046,458 @ 310.00p Value: £3,244,020

Domino's Pizza UK & IRL (DOM) Director name: Mr Christopher Moore Amount sold: 553,927 @ 310.00p Value: £1,717,174

Comments (0)

Share with
friends:

Related articles

Leave a comment

This will be the name displayed with your comment.

This helps us verify comments are genuine. It will not be displayed anywhere on the site and is stored confidentially.

Please keep your comment within 1,000 characters and relevant to the main topic. We encourage healthy debate, but we don't allow insults or bad language. Anything off topic or unpleasant, we'll remove. Enjoy the conversation! Thank you.

captcha To prevent spam-related comments please enter the characters shown in the 'Captcha' box to the left.

By leaving a comment you accept our terms and conditions.


FREE - MoneyWeek's daily investment emailJohn Stepek

Our free daily email, Money Morning, is an informative and enjoyable analysis of what's going on in the markets. Written by our Editor, John Stepek, and guest contributors.
Sign up FREE to Money Morning here.

>