ASIC questions David Gyngell over sale of $1.5m shares, Nine denies all wrongdoing
Sharemarket watchdog the Australian Securities and Investment Commission (ASIC) has questioned Nine Entertainment over the sale of $1.5m of shares by its CEO weeks before a major profit downgrade.
It is understood the corporate regulator has been in contact about the transaction, with the company and its boss David Gyngell denying all wrongdoing.
A spokeswoman for Nine said this afternoon: “The two issues (the sale and downgrade) are not linked.
“If we had been aware of a downgrade anytime prior to Friday afternoon we would have announced it at that time. That is the ASX disclosure obligation
“David Gyngell’s shares were sold following approval of the chairman, and in compliance with the company’s share trading policy.”
The company has been questioned following revelations that Gyngell’s sale of 700,000 shares at a price of $2.14 each on May 20 reaped the media boss around $400,000 more than the shares would have earned if he had sold them yesterday, after Nine’s downgrade last Friday.
In the wake of the downgrade the shares fell 20 per cent to $1.62 while gradually improving today to $1.70.
Nic Christensen
