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Shares in online retailer Kogan.com (ASX: KGN) have slumped 25 per cent after rumours came true that founder Ruslan Kogan and his chief financial officer were set to offload a large piece of the company.
Kogan and CFO David Shafer sold $42 million worth of KGN shares, believed to be six million shares at $7.00 each, and that they had "reluctantly accepted the bid due to personal financial commitments".
In a statement released to the ASX on Wednesday, the company confirmed the sale and said Kogan and Shafer were "fully committed to the business".
"Kogan.com advises that Mr Ruslan Kogan and Mr David Shafer received an unsolicited bid for 6,000,000 shares this morning," the ASX statement says.
"They have reluctantly accepted the bid due to personal financial commitments. Other than the trade outlined above, Mr Kogan and Mr Shafer will not be dealing in securities prior to September 2018.
"Mr Kogan and Mr Shafer remain fully committed to the business and continue to have the vast majority of their personal wealth invested in Kogan.com."
Speculation around the large sale of shares by Kogan and Shafer have been circulating for nearly two weeks and on Monday June 4 the KGN share price was at $9.80.
On Tuesday June 5, the company issued an ASX statement denying a share sale was imminent.
"Kogan.com notes the media speculation overnight regarding a sale of shares by Mr Ruslan Kogan and Mr David Shafer.
"The Company wishes to advise that Mr Kogan and Mr Shafer did not receive a bid that was acceptable to them and, as such, no transactions have occurred.
"Mr Kogan and Mr Shafer are not currently in discussions to sell any shares."
That denial sparked a share price fall and at the open of trading on Thursday, its price was $7.31 which is a drop of just over 25 per cent.
Russian Kogan started Kogan.com in 2006 with just two television models in his inventory but the platform now sells more than 50,000 products in including household appliances and whitewoods.
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