// The Hut Group CEO Matthew Moulding plans to sell shares worth £54m in its £5.4bn stock market listing
// He will use the sale to fund the transfer of its property into his ownership
The Hut Group chief executive Matthew Moulding is reportedly planning to sell personal shares worth £54 million in its £5.4 billion stock market listing.
Moulding, who founded the online retailer in 2004, is selling shares despite assurances from advisers that he would hold on to all of his stock.
He said he would use the sale to fund the transfer of its property into his ownership.
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The Hut Group’s prospectus showed that Moulding’s new investment vehicle, FIC Shareco, is selling 10.8 million shares at £5 each.
This is to help fund a restructuring of The Hut Group’s property, which will transfer ownership to Moulding.
If it goes ahead, Moulding would become the online retail firm’s landlord and will collect at least £19 million a year in rent.
Moulding’s property holding company, Kingsmead, suggests that there are additional income streams of £250,000 per year in service charges and a project manager fee of £300,000 a year.
Meanwhile, Moulding and wife Jodie Moulding have used their shares in The Hut Group as collateral for a £100 million loan for FIC Shareco.
The prospectus revealed that if the loan defaulted, Barclays could take a direct interest in 18.8 per cent of the business.
Moreover, the retailer said that the transfer of property to Moulding would help reduce its debt by about £200 million.
The Hut Group’s upcoming stock market flotation will be London’s biggest technology listing.
Moulding decided against a premium listing so that he could remain as executive chairman and chief executive.
He was also granted a founder share, which means he can block any takeovers and resolutions.