Ewloe based Moneysupermarket shares dip as founder cashes in £129m of shares

The founder of Ewloe based Moneysupermarket.com Simon Nixon has sold £129.5m of shares in the price comparison website he created in 1993.

Nixon sold 70m shares at 185p each, representing 12.9% of the company. 

The sale was increased from 55m due to strong demand, Nixon retains 16.6% of the company and has agreed not to sell more shares for at least 180 days.

The companies Chairman Gerald Corbett said the sale would increase liquidity and put more shares in public hands. Nixon will remain as non-executive deputy chairman.

News of the latest sale has sent the company’s shares 9.3p lower to 186.74p.

Analyst David Reynolds at Jefferies remained positive on the stock:

[We] welcome the additional liquidity and our fundamental view on the stock, a positive one, remains unchanged since 4 March [the preliminary results].

[There was a] blissfully brief and limited communication from the company. Someone once told me that if I didn’t say anything, then I would always avoid communication gaffes. So in a curious way we welcome the very limited commentary from the company – ultimately this is a founder selling equity and very little to do with the company.

And thankfully on this occasion there appears to be no ill-conceived special dividend funded by an increased bank facility with a rather punchy arrangement fee. Much cleaner, much simpler, much better.

At the end of the day, the additional liquidity is to be welcomed.

[images: Google & Realbusiness.co.uk]