- Mike Ashley writes £8 million of put options
- United Utilities’ CEO retires, sells shares
MIKE ASHLEY SELLS £8 MILLION OF CFD PUT OPTIONS
Billionaire founder of Frasers Group (FRAS), Mike Ashley has sold put options over the equivalent of 1 million shares with an 800p strike price and September 2023 expiry.
It means Ashley has an obligation to buy the shares at the strike price from the option buyer if they exercise the option. The idea of selling (also known as ‘writing’) a put option is to potentially own a stock at a more favourable price in the future.
Michael Murray took over as CEO of Frasers in May 2022, replacing Ashley after he stepped down 40 years after founding the business.
Frasers owns successful sports retailer chain Sports Direct. Last December, the group forecast a pre-tax profit of £500 million. In February, the group announced it was buying back up to £80 million of stock in a new share buyback program.
The retailer has used the cash flows from Sports Direct to expand into more upmarket areas in recent years including the purchase of various brands from rival JD Sports (JD).
UNITED UTILITIES’ CEO SELLS SHARES AHEAD OF RETIREMENT
United Utilities (UU.) CEO Steven Mogford sold 35,000 shares at £10.54 each on 15 March, giving a total value of £368,943.
The transaction follows confirmation of Mogford’s retirement date of 31 March. Mogford announced his intention to retire last year, having been CEO since 2011, and he will be replaced by Louise Beadmore.
Chairman David Higgins said: ‘I wish to express my sincere thanks to him for the extensive improvements he has overseen in the performance of the business during his tenure as CEO, along with a number of key projects, in particular, the successful delivery of the West Cumbria project providing customers in the region with a new resilient water supply.’
