NATIONAL: Luxury retail company OrotonGroup is optimistic about growing investor interest despite news its founding shareholders have eased back on financial commitments.
Executive chairman Ross Lane yesterday announced the on-market sale by family interests of 12 million ordinary shares in the OrotonGroup. Although the Lane family will still retain 11.9 million company shares – equivalent to 29 per cent of its issued capital – Mr Lane said the recent sale arose from a strategy to "diversify" his investment portfolio.
The proportion of OrotonGroup shares held by investors not associated with the company's board has now risen to 23.9 million shares, representing around 58.1 per cent issued capital.
Chief executive Sally MacDonald had a positive spin on the Lane family's announcement.
"By retaining a sizeable stake, the founding shareholders have indicated their long term commitment to the business while the sale of shares has allowed an expansion of the shareholder base which can be expected to generate greater investor interest, research coverage and liquidity."
PIC: WENDELL TEODORO