Under Armour’s CEO plans to sell more than million shares of his company’s stock (NYSE:UA) valued at more than $120 million, the company announced last week.
Kevin Plank entered into a pre-arranged stock trading plan to sell up 1,125,000 shares of the company's class B common stock that he personally owns as well up to 125,000 shares of class B common stock held by his charitable foundation by the end of 2015.
Under Armour shares closed at $96.39 on Nov. 3 at the time of announcement, valuing the stock Plank and his charitable trust plan to sell at $120.5 million.
“The sales under the trading plan sales are being done for asset diversification, tax and estate planning and charitable giving purposes,” Under Armour officials said in an SEC filing.
If Plank completes the planned sales, he would own 34.45 million shares of the class B common stock and 76,445 shares of the company's class A common stock, representing approximately 16 percent of the total class A and B shares (as of Sept. 30, 2015) and approximately 65.5 percent of the voting power.
Plank also could sell up to 1.5 million shares of Under Armour's class C common stock (personal and charitable) before August 2016 as part of the plan. But that is contingent on the board’s approval of a 2-for-1 stock split to create the new class of shares, which faced opposition from a shareholder class-action lawsuit that has been reportedly been settled.
The split and new class C shares would allow Plank to sell more shares, while retaining control of the company as its largest shareholder.
–David Clucas
