Micro Focus International has lost nearly one-fifth of its value over the past week following the departure of finance director Nick Bray and this has tempted the software company's chairman to invest just over £400,000.
Kevin Loosemore bought 100,000 shares at 401.4p each, which takes his shareholding to 300,000 shares, or 0.15%.
Loosemore used to be chairman of IT services firm Morse, which was recently taken over by 2e2. Loosemore had 2.75m shares in Morse so the 51p a share bid would have yielded £1.4m before any potential tax payment.
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Bray's departure from Micro Focus followed the appointment of new chief executive Nigel Clifford. A replacement could be in place by the end of the summer.
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The recent results were up to expectations. Micro Focus reported that adjusted pre-tax profit rose to $160.9m in the year ended April 2010 compared with $115.9m last time on revenue up 57% to $432.6m.
The group proposed a final dividend of 16.2 cents per share, taking the total proposed dividend for the year to 21.8 cents per share - up 40% on the previous year. The shares do not go ex-dividend until 1 September.
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