Guzman y Gomez escrow set to lift
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The news: Escrowed shareholders of Guzman y Gomez will soon be free to dispose of up to 25% of their shareholding from 10 March, if the stock continues to trade above key levels following its half-year results.
The numbers: The escrow is scheduled to lift after trading on 10 March if the 10-day volume weighted average price of GYG stock remains above $22 a share after market close on 7 March.
The share price has not dipped below $34 since the company released its mixed results last month.
The context: The voluntary escrow was accepted by key shareholders including fund manager TDM Growth Partners, investment bank Barrenjoey, co-founder Steven Marks and the board.
The shareholding subject to the 25% escrow is equivalent to 13.5% of the company, or around $472 million shares at Monday's valuation.
As Capital Brief reported earlier this year, many of those investors are not expected to significantly dispose of their holdings at the first opportunity. But it continues to be seen as a major test for the company's valuation which has swelled since it IPO'd in June last year.
Following its full-year results in August the remaining escrow on the remaining 75% of those investors' shares will lift pending further conditions being met, freeing up roughly $1.4 billion worth of the company's float.
The source: ASX
