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The founders of Cavotec MSL have cashed up some shares in a bid to improve the liquidity of the business.
The company said yesterday that 13 managers, directors and founders had sold an average of 5 per cent of their holdings for $18 million to institutional and habitual investors.
Executive chairman Stefan Widegren said the move was a step in enhancing the liquidity and attractiveness of the company's stock.
"We are delighted to see the market's positive response to this transaction as the 4 million shares equate to some 18 months of historical trading volume," Widegren said.
He was not concerned the sale, transacted at $4.45 a share, would be seen as a move by original shareholders to cash in.
"Possibly because it's a small percentage ... and also I think we have signalled quite early on that this was part of our strategy."
The company had been considering a possible acquisition and an issue of new shares.
"But, for the moment, it has not matured so we felt that raising money without really having a specific target would not be sensible so we just did the secondary placement for the time being," Widegren said.
"We will come back the day we have an acquisition with a specific target."
The NZX-listed firm was formed by the merger last year of Mooring Systems with the larger Netherlands-based Cavotec.
Mooring Systems was a Christchurch engineering company making automated vacuum-based devices for mooring ships, while Cavotec designed and built mobile power-generating systems for ships, planes and the mining industry.
At the time of the merger, Mooring Systems issued 50.9 million new shares to Cavotec shareholders, giving them an 80 per cent stake in the merged entity.
ABN Amro Craigs analyst Selwyn Blinkhorne's 12-month valuation of the shares was $4.65 and he said the selldown was not unexpected.
"Bearing in mind the European Cavotec owners ended up with 80 per cent of Cavotec MSL, they'd always indicated that at some stage they would sell a few down," Blinkhorne said. "Relative to their shareholding, it's not that significant."
Cavotec MSL shares closed unchanged at $4.70 yesterday.
