Inghams (ING) share price falls on TPG sell down
Stock
Inghams (ING) $4.14 as at 4/04/2019
Event
Ingham’s chicken has taken a hit Thursday following a large amount of stock changing hands before the market opened this morning. TPG – the private equity firm, not the telco – has sold another portion of their holding. Over $200m worth of stock traded at $4.28, around 5% of the company’s stock taking TPG’s stake down to 19%. The price was a 3.4% discount to yesterdays close.
The sale comes 12 months after TPG sold ~$200m worth at $3.62 – a 4.7% discount at the time – and 2 and a half years since TPG listed Ingham’s on the ASX. It looks as though TPG plan to progressively sell down holdings in previously controlled businesses with the company also selling a large stake in a Hong Kong listed company.
Coupled with the sell down, Ingham’s have been forced to recall some of its gluten free schnitzel packages which were incorrectly filled with a different product which contains gluten. Some suspect timing no doubt, but unlikely to be a big impost on the company’s earnings this year.
Inghams (ING) Chart
Market Matters Take/Outlook
