Home > Industry > Kogan Shares Plummet 14% After $100M Sale Stalls

Kogan Shares Plummet 14% After $100M Sale Stalls

Serious questions have been raised about the future of local e-commerce giant, Kogan.com, after what appears to be a botched attempt by company directors, Ruslan Kogan and David Shafer, to offload $100 million worth of shares.

Announced earlier today, Kogan directors, Ruslan Kogan and David Shafer formally rejected a bid to purchase 11 million shares in their company.

Published in an ASX statement, Kogan and Shafer affirm they did not receive an “acceptable” bid, with no transactions occurring.

Both parties advise they are “not currently in discussions to sell any shares”.

The offer’s rejection has sparked speculation as to whether Shafer or Kogan, are looking to exit the business.

The company has attempted to rebuff media attention, emphasising the fact no transactions occurred.

The market, however, has responded differently, with Kogan.com shares diving 14% to $8.40 around 1pm.

Trading briefly this morning, shares fell ~12%, before entering a halt.

As per The Australianboth Kogan and Shafer attempted to sell a large portion of their company on Monday night – a deal involving 11 million shares via Macquarie and Canaccord.

The news follows yesterday’s announcement of Kogan branded whitegoods and kitchen appliances – a market Mr Kogan claims “lacks competitive tension” due to logistical complexities.

Kogan branded whitegoods and kitchen appliances are expected to release before the end of the calendar year – news which sent shares soaring 7.5% on Monday, to close at $9.80.

The news follows Kogan Mobile’s expansion into New Zealand, complimenting a growing portfolio of affiliated businesses – e.g. life insurance, pet insurance and NBN internet.

Despite today’s decline, shares in Kogan have reportedly burgeoned 478% over the past year.

Mr Kogan reportedly holds a 45% stake in Kogan.com Limited, and Shafer around 13%.

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