controlling-shareholder-sells-small-block-in-yue-yuen

Controlling shareholder sells small block in Yue Yuen

The Tsai family raises $48 million at a 6.75% discount, but triggers a sell-off in the market that leaves other shareholders with a 13.3% loss on the day.

On Friday, the controlling shareholder in athletic shoemaker Yue Yuen Industrial, the Tsai family, took advantage of a sharp rally in the company's share price earlier in the week to raise HK$373 million $48 million by selling a small portion of its holdings. The sale was completed during the lunchtime break and, while sources say the shares were fully placed with more than 20 investors, the share price tumbled in the afternoon, finishing 13.3% down on the day and 3.8% below the placement price.

Such a sharp sell-off could be an indication that the shares were either not distributed in full -- indeed that was the speculation in the market on Friday afternoon --...

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