Robert Adair, Chairman of Plexus Holdings, is retiring from the board at the end of June, and has sold his entire shareholding in the company.
Adair's holding of 3.5m shares, worth just over £3m at today's prices, has been sold in conjunction with a placing by the company of 2.56m shares at 78p each, from which the oil and gas engineering firm will pocket around £2m.
Plexus says it will use the proceeds from the placing of new shares to develop its "friction-grip" wellhead technology business, as well as to provide working capital to finance other product and growth initiatives planned over the next three years.
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Certain other shareholders of Plexus Holdings, including parties associated with directors Jeffrey Thrall and Ben van Bilderbeek, have also decided it is a good time to sell some of their shareholdings via the placing meaning that, in total, 7.95m shares have been placed, raising £6.2m before expenses.
The company said the share sales should increase liquidity and meet institutional demand for the shares.
Ben van Bilderbeek, Plexus's Chief Executive, hailed the "highly positive response to the over-subscribed placing" which he claimed "emphasises the investment community's growing confidence in Plexus's ability to become a leading specialist oil and gas wellhead services company."
The process to select and appoint a new Chairman is underway, the company said.
The firm's stock dropped 2p to 85.p on the morning of the announcement. Over the last 12 months, however, Plexus is up 38%.
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