The share price of the Purple Group, took a nosedive yesterday by more than 7 percent to R2.51 following the announcement that founder Mark Barnes was selling a R40 million share in the company.
Purple Group, is the owner of investment brands such as EasyEquities, Emperor Asset Management, EasyProperties, and EasyCrypto.
This is a keenly watched stock as this year and last year it was punted in the Cristal Challenge – an investment competition where each participant chooses five JSE-listed stocks in an equally weighted portfolio.
In an interview yesterday Mark Barnes said he wanted to diversify his portfolio. Barnes said he still had faith on the Purple Group. He did not disclose where he planned to invest.
Last year, Barnes, who is the former Post Office chief executive, sold his 17.5 percent share in the company. At the time, he said he had no plans to leave the Purple Group as the majority of his personal wealth was still in Purple.
Barnes has been involved with Purple for more than 20 years. In October 2004, Barnes joined the board of Purple’s predecessor, Avasa Holdings, after executive chair Brian Myerson resigned.
Barnes became chair, injecting R3.6m into Purple. By August 2006, his stake had grown to 30.9 percent. In February 2019, after Barnes left his position as chair and began selling his stock.
Through the EasyEquities platform, retail investors, which include Sanlam, make up 25 percent of Purple’s almost 50 000 shareholders.
BUSINESS REPORT