Paracon directors Mark Jurgens, Graham Bentley and Ronald Wasley on Friday collectively sold 12 million shares to IT group Dimension Data, for a total of R25.2 million.
JSE-listed Paracon provides IT skills and business solutions. Earlier this month, it released its interim results for the six months ended 31 March, delivering 26% growth in turnover and 46% increase in net profit.
Since then, the company's share price has jumped almost 24%, to R2.78 from R2.25. However, Friday's trade saw the shares - equal to almost 3% of the company's issued share capital - sell at R2.10.
Paracon CEO Jurgens agrees it was a good deal for DiData. "We have never cashed in shares before and we were presented with an opportunity to do so from investors who wanted to increase their own shareholdings. For us it meant extra cash, for Dimension Data it meant an increased shareholding at a good price."
Last week, DiData executive chairman Jeremy Ord told analysts the international shortage of IT skills is the biggest challenge facing the group. As a result, the company is implementing several internal programmes to improve the attraction and retention of skills.
Ord is also a non-executive director of Paracon.
Following the deal, DiData holds around 32% of the company's shareholding, says Jurgens.
Jurgens sold seven million shares, for R14.7 million, and retains approximately 19 million Paracon shares. Bentley, MD of IT Resourcing, sold three million shares, for R6.3 million, and retains in excess of nine million company shares. Wasley, Paracon's group marketing director, sold two million shares, for R4.2 million, and retains around six million Paracon shares.
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