Wednesday, November 16, 2011 : Founder sells of GBP 1.5 million of shares to invest in cleaning company, but he holds plenty more
Andrew Black, the co-founder of betting exchange Betfair, has sold shares worth about GBP 1.5 million less than a week after the company announced it has found a new chief executive, reports The Guardian newspaper.
"The sale is thought to have been triggered by Black subscribing to a share issue at Hyrodec Group, an Aim-listed cleantech company where he serves as a non-executive director and where he is investing a further GBP 1.7 million into the company," the newspaper reports.
Black founded Betfair with Ed Wray in 2000, and still will hold 9.9 percent of the betting group following the recent sell-off; he therefore remains the third largest shareholder in the firm after Softbank and his partner Wray, which still leaves him as the third largest shareholder, with a stake worth about GBP 77 million.
Black recently stepped down from the Betfair board .
The company's share price has declined dramatically since its IPO in October last year; listing at GBP13 a share, it is currently trading at GBP 7.44 amid concerns over online gambling regulation and taxation in foreign markets, intensifying competition and a string of management defections from the company.
Co-founder Wray has also announced that he will step down as chairman once a successor can be found.