Investors in Ashmore Group (ASHM) may have drawn breath upon sight of chief executive Mark Coombs’ latest share disposal, particularly when set against the asset manager’s recent performance.
Ashmore, which specialises in emerging markets investment, recorded a 22 per cent decrease in its assets under management (AUM) in its quarter ending 31 March, with corporate debt and equities registering its highest drops. Ashmore attributed its performance to sharp market falls in February, with sell-offs in emerging markets fixed income and equities delivering “the most attractive valuations seen in more than a decade since the 2008 financial crisis”, it claimed.
Mr Coombs’ disposal of 10m shares, which earned him £43.5m, is however unconnected to Ashmore’s third quarter. It took place as part of a strategy set out in February last year to reduce the CEO’s holding from its previous level of around 39 per cent, which he admitted “could restrict Ashmore’s future success,” adding that “it would be prudent to prevent the size of my shareholding becoming a more significant issue over time.”
According to the Takeover Code, any person with 30 per or more of a company’s voting rights must make an offer to acquire all of the company’s shares, although the company is able to apply for a waiver at its annual general meeting. Mr Coombs agreed to sell up to 4 per cent of his Ashmore stock every year, targeting bringing this below the 30 per cent threshold. Mr Coombs also sold shares in September 2019 and February 2020, and his latest disposal reduces his stake from 36 per cent to 34.6 per cent.
Berenberg analysts forecast full year 2020 adjusted earnings per share of 25.9p, falling to 22.7p in 2021.
| Buys | ||||||
| Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
| Air Partner | Ed Warner (ch) | 16 Jun 20 | 75,000 | 75 | 56,250 | |
| Ocean Outdoor | Aryeh Bourkoff | 16 Jun 20 | 56,000 | 500 | 279,887 | Converted from US$ |
| M&G | Massimo Tosato | 17 Jun 20 | 61,000 | 163.92 | 99,991 | |
| WPP | Keith Weed | 17 Jun 20 | 3,121 | 640.32 | 19,984 | |
| Domino's Pizza | Usman Nabi | 17 Jun 20 | 1,024,213 | 306.48 | 3,138,902 | Aggregate price, purchased by Browning West. Stake now 9.16% |
| City of London Investment Group | Barry Olliff | 18 Jun 20 | 16,522 | 369.99 | 61,130 | |
| Filta Group | Jlubomir Urosevic | 19 Jun 20 | 50,000 | 118 | 59,000 | |
| William Hill | Matt Ashley (cfo) | 19 Jun 20 | 85,000 | 128 | 108,800 | Purchased as part of placing |
| GetBusy | Clive Rabie | 19 Jun 20 | 154,429 | 69.9 | 107,904 | Converted from Aus$ |
| Bayford Group | Jonathan Turner | 19 Jun 20 | 125,000 | 31 | 38,750 | Purchased by PCA |
| CPPGroup | Oliver Laird (cfo) | 19 Jun 20 | 21,619 | 371 | 80,206 | |
| Sells | ||||||
| Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
| PZ Cussons | Giannis Bouras | 18 Jun 20 | 26,360 | 181.59 | 47,867 | |
| Ashmore | Mark Coombs (ceo) | 19 Jun 20 | 10,000,000 | 435 | 43,500,000 | Remaining stake of 34.6% |
| Renishaw | Daniel John Deer | 19 Jun 20 | 10,000 | 3,921 | 392,100 | |
| Mediclinic | Gert Cornelis Hattingh | 19 Jun 20 | 25,904 | 270.69 | 70,119 | Sold by PCA |
| Direct Line | Jonathan Greenwood | 19 Jun 20 | 15,500 | 280 | 43,400 | |
| Daily Mail & General Trust | Lord Rothermere (ch) | 19 Jun 20 | 50,364 | 700 | 352,548 | Sold to fund a UK property purchase |
| Chemring | Sarah Ellard | 22 Jun 20 | 31,000 | 236.5 | 73,315 |
