Kogan Directors Botch $100 Million Sale

According to The Australian, Kogan and Shafer tried to offload $100 million worth of shares via Macquarie and Canaccord, in what is now being referred to as a “botched sale attempt”.

Kogan.com has confirmed no sale went through in an ASX announcement released on Tuesday afternoon.

“The company wishes to advise that Mr Kogan and Mr Shafer did not receive a bid that was acceptable to them, and as such, no transactions have occurred,” the statement says.

This was then reaffirmed with a closing note that says: “Mr Kogan and Mr Shafer are not currently in discussions to sell any shares.”

However, it seems the stock market isn’t quite as easy to appease, as the e-tailer’s shares have reportedly dropped 14 percent to roughly $8.71 a share as of 2 pm on Tuesday.

This isn’t the first time the company’s directors have tried to offload shares, with Kogan selling $50 million in shares via Canaccord Genuity to institutional investors in February this year. The February sale came after both Kogan and Shafer sold a $20 million stake for $3 a share in August 2017, and a further $23 million at $4.25 a share in October 2017.

The company has been reporting solid year-on-year growth, doubling its profits in the first half of 2018, followed by a revenue growth of 46.1 percent in Q3.

This sale attempt comes after the company’s shares surged 7.5 percent by the close of trade on Monday, after the e-commerce giant announced its plan to enter the whitegoods and built-in kitchen appliance market.

Kogan and Shafer have remained tight-lipped on the alleged botched sale, which would have seen each of them reduce their already shrinking stake in the business. Kogan reportedly owns roughly 50 percent of the company’s shares, while his co-founder, Shafer, is believed to hold roughly 13 percent.

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