Cut and Run: Why Magellan Shareholders Won’t Sell Like Douglas

In line with the current share price, Staff currently has approximately $20 million in loans. In fact, Magellan has recorded $375,000 in credit losses in connection with the loan.

Mr. Douglas’ Sale Decision – Movement he said it was silly 11 months ago – I am also questioning his beliefs at the company.

Employee morale can drop

This factor concerns the debt-ridden staff who believed in their co-founders and used their optimism to take out loans related to Magellan shares.

Like Magellan’s stock crater, morale can suffer if these employees feel trapped.

In February, Magellan sought to boost morale and staff retention by issuing cash bonuses to 139 staff members they would receive if they stayed in 2024 and 2025.

also issued 10 million unlisted stock options with an exercise price of $35 per shareThe terms of the recourse loan have been extended but will remain in place.

The harsh reality for many may be working for a company just to pay off debt. Worse, if stock prices continue to fall, the very thing that serves as collateral for employee debt will be undermined.

Douglass, who sold 13 million shares in a block transaction through investment bank Barrenjoey on Monday, cashed out at $9.10 a share. That was a 5.5% discount to the closing price, the lowest level Magellan shares have traded in nearly a decade.

The shares sold for “family diversification purposes” were executed through Mr. Douglas and his family’s Midas Touch Investments Pty Ltd.

After the sale, the Douglas family will be left with at least $100 million of Magellan and its money. street talk reported on monday. New investment bank Barrenjoey is partly owned by Magellan.

The co-founder took a leave of absence from his duties as Magellan’s chairman and chief investment officer in February, resigned From the company’s board of directors in March. He had a consulting contract with Magellan that paid him $400,000 a year.

Magellan declined to comment on the status of staff loans and consulting contracts.

Mr. Douglas Australian Financial Review.

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