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TalkTalk directors buy into placing

Eight senior management have contributed just over 20 per cent of the group’s £200m fundraising
February 23, 2018

Eight of TalkTalk’s (TALK) directors – including chief executive Tristia Harrison and chief financial officer Kate Ferry – have contributed £40.8m to the group’s equity placing. The group raised £200m for the reduction of debt and investment in the group’s own platform of fibre optic broadband cables.

IC TIP: Hold at 102p

Founder and executive chairman Charles Dunstone – who returned to the company in February 2017 to help return it to growth – was the biggest buyer, spending £35m on 32.7m new shares, and yet he's been criticised for not digging deep enough. Mr Dunstone’s investment was 17.5 per cent of the total placing, meaning he contributed less than his current stake in the company.

Some believe £200m isn't enough for the group’s expensive fibre optic broadband investment strategy. TalkTalk plans to contribute £100m in cash to its collaboration with M&G Prudential, but the remainder of the £1bn project will be funded by debt – concerning as the net debt figure creeps uncomfortably closer to the group’s banking covenants.

Buys
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
AFH Financial  Mark Chambers9 Feb 183,21734110,97038,2170.101
AFH Financial♥Mark Chambers9 Feb 185,85734119,97244,0740.117
Accrol   Dan Wright (ch)8 Feb 1850,00033.516,750250,0000.194
Accrol   Dan Wright (ch)8 Feb 1865,1683724,112315,1680.244
Accrol   Dan Wright (ch)8 Feb 18100,00036.536,500415,1680.322
BP Marsh & Partners Campbell Scoones8 Feb 185,00025512,75051,0000.175
BP Marsh & Partners Pankaj Lakhani8 Feb 185,00025512,75035,0000.120
BP Marsh & Partners Nicholas Walker8 Feb 189,80425525,0009,8040.034
BP Marsh & Partners♥Nicholas Walker8 Feb 189,80425525,00019,6080.067
Cineworld  Dean Moore12 Feb 1815,000222.633,39015,0000.005
Halma Roy Twite9 Feb 182,0001,18123,6204,0000.001
Henderson International Income Trust Aidan Lisser13 Feb 186,350159.1510,10626,1480.015
Henderson Smaller Companies Investment Trust Mary Sieghart8 Feb 181,50085512,8259,0380.012
Intermediate Capital  Stephen Welton12 Feb 1825,0001,022255,50040,0000.014
JPMorgan Japan Smaller Companies Trust Alexa Henderson13 Feb 184,69241919,6594,6920.009
NEX  Anna Ewing8 Feb 182,50064616,1505,0000.001
National Grid♥Peter Gershon (ch)13 Feb 186,500742.5548,26690,0000.003
North Atlantic Smaller Companies Inv Trust Christopher Mills (ce)14 Feb 182,0002,65553,1003,666,00025.413
Polymetal International Marina Grönberg8 Feb 183,00074122,23031,4000.007
Polymetal International Marina Grönberg8 Feb 185,00073136,55028,4000.007
QinetiQ  David Smith (cfo)9 Feb 1810,188196.319,99963,4410.011
Shaftesbury Richard Akers12 Feb 183,000949.0128,4705,0000.002
SigmaRoc Garth Palmer (fd)8 Feb 1894,5943735,000109,5940.080
St Modwen Properties Rob Hudson (fd)8 Feb 1824,666403.3499,48876,9850.035
St Modwen Properties Rob Hudson (fd)8 Feb 1824,794401.2699,48852,3190.024
TalkTalk Telecom*Charles Bligh8 Feb 1865,25610769,824859,5160.075
TalkTalk Telecom*Ian West8 Feb 1818,69110719,999364,7140.032
TalkTalk Telecom*Kate Ferry (cfo)8 Feb 18139,835107149,623139,8350.012
TalkTalk Telecom*John Gildersleeve8 Feb 1846,72810749,999291,8660.025
TalkTalk Telecom*Nigel Langstaff8 Feb 18186,915107199,999299,7360.026
TalkTalk Telecom*Roger Taylor8 Feb 184,672,8961074,999,9999,826,6880.857
TalkTalk Telecom*Charles Dunstone (ch)12 Feb 1832,710,28010735,000,000326,769,67628.507
TalkTalk Telecom*Tristia Harrison (ceo)8 Feb 18279,671107299,2481,762,2820.154
Tate & Lyle♥Gerry Murphy (ch)13 Feb 1810,000571.195357,12020,0000.004
U and I♥Peter Williams (ch)12 Feb 1825,000199.5849,895100,0000.080
UP Global Sourcing  Jim McCarthy (ch)12 Feb 18300,00033.4100,200800,0000.974
Volex Dean Moore12 Feb 1815,00067.810,17015,0000.017
Sells
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
AB Dynamics Tim Rogers (ceo)9 Feb 18150,0007851,177,500192,9530.995
BP Marsh & Partners♥Brian Marsh  (ch)8 Feb 18215,820255550,34117,768,58160.869
Bango*Gianluca D'Agostino8 Feb 1818,000177.531,95019,5000.028
Central Asia Metals Kenges Rakishev9 Feb 1810,605,87627529,166,15900.000
Cranswick John Bottomley (fd)12 Feb 188753,05426,72386,1390.169
Cranswick♥John Bottomley (fd)12 Feb 187,1253,054217,59879,0140.155
Entertainment One Darren Throop (ceo)13 Feb 181,170,005293.123,429,5198,854,0031.971
Entertainment One Darren Throop (ceo)14 Feb 18183,862291.21535,4258,670,1411.931
Euromoney Institutional Investor Patrick Sergeant (p)12 Feb 1813,2651150152,548152,0390.139
Euromoney Institutional Investor♥Patrick Sergeant (p)13 Feb 183,8281,14643,869101,4760.093
Euromoney Institutional Investor♥Patrick Sergeant (p)13 Feb 1820,0001,140228,000105,3040.097
Euromoney Institutional Investor Patrick Sergeant (p)13 Feb 1826,7351,140304,779125,3040.115
Learning Technologies  Jonathan Satchell (ceo)12 Feb 183,000,000752,250,000100,139,99517.445
Learning Technologies  Piers Lea12 Feb 183,000,000752,250,00013,023,3832.269
*Placing/tender/open offer ♥Spouse/connected party