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Rakon’s Robinson brothers sell shares following breach

18 Sep 2013

Rakon managing director Brent Robinson and his brother, executive director Darren Robinson, have sold some 554,000 shares to fellow directors Bryan Mogridge and Bruce Irvine after a telling off by the Takeovers Panel.

Chairman Mogridge and independent director Irvine bought the shares from the Robinsons in off-market transactions for some $127,400, according to substantial shareholder notices filed with the NZX today.

Mogridge bought almost 154,000 shares at 23 cents each from Darren Robinson, while Irvine bought 123,000 shares from Darren and 277,000 shares from Brent at the same price.

"The off-market purchases by Bryan Mogridge and Bruce Irvine reflect the confidence of each in the company's current position and prospects and are a signal to investors of their continued commitment to the company," Rakon said in a statement.

The brothers breached the Takeovers Code in July when they bought about 493,000 shares from about $109,000 on market.

The transactions fell afoul of the code as their combined family stake, including their father Warren Robinson's share, was more than 20 percent. The brothers had seven weeks to sell the shares.

Earlier this month, Mogridge told shareholders the company plans to start paying dividends after the year ending March 31, 2015, having previously steered away from cash returns on the idea Rakon could create more value by retaining earnings.

The shares have plunged 37 percent this year, trading at 22 cents today, valuing the firm at $42 million and a 66 percent discount to its net tangible assets of 64 cents a share. The shares peaked at $5.80 in May 2007, having sold in the initial public offering a year earlier at $1.60 apiece.

Mogridge and Irvine both joined the Rakon board in November 2005, and have previously sat together as directors of Pyne Gould Corp, to which they were both appointed in January 2003.

Mogridge is still on the Pyne Gould board as chairman, while Irvine left in January last year.

By Paul McBeth - BusinessDesk

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