CTI founder sells down to Forager

CTI Logistics chairman David Watson has sold down his shareholding for the first time since he founded the business in 1972, with Forager Funds Management acquiring some of his shares and investing further funds to become a substantial shareholder.

Mr Watson told shareholders on Monday that he had sold about 2.2 million shares in CTI to Sydney-based institutional investor Forager for $1.63 million.

Forager also paid a further $2.4 million to acquire an extra 3.2 million shares in CTI, with Argonut acting as lead manager to the placement.

Ther two deals have given Forager a 7.24 per cent stake in the logistics and transport services business.

In a letter to shareholders, Mr Watson disclosed that the shares he sold were under two entities, one of which – Aberdeen Management – is co-owned by fellow CTI directors Bruce Saxild and David Mellor.

“Asic regulations have required all three of us to declare an ownership interest in all CTI shares held by Aberdeen," Mr Watson said.

“The sale of my shares means that I no longer have a declared interest in their shares, and they no longer have an interest in the shares that I’ve sold to Forager.

“We would like (shareholders) to note that neither Mr Saxild nor Mr Mellor sold any shares.”

This was incorrectly updated in the Directors’ Interests section of the Business News morning email today, which showed both Mr Saxild and Mr Mellor as selling shares in CTI.

Post the share sale, and after removing 1.5 million shares which are in his children’s names, Mr Watson has retained about 25.9 million shares in CTI, equal to a 36.4 per cent stake.

Mr Mellor holds 4.6 million shares and Mr Saxild holds 3.6 million. 

CTI shares were 0.6 per cent higher to 79 cents each at midday.