For $3 million, Central Coast entrepreneur Tony Denny buys 5 percent stake in McGrath
Entrepreneur Tony Denny has acquired a 5 per cent stake in the listed real estate agent agency, McGrath.
An ASX substantial holding notice was lodged yesterday after Denny acquired his 5.05 per cent stake in the agency.
The cashed-up businessman took a position ahead of the agency unveiling its turnaround strategy.
The 7.2 million shares were bought over the past fortnight after buying shares on March 12 and 20 costing just over $3 million.
Some were likely acquired from McGrath's biggest institutional backer, Perpetual which sold almost 2.5 million shares on March 12 to reduce its stake from 14.2 per cent to 11.6 per cent.
Shares in McGrath closed Tuesday up 2.5 per cent at 41 cents, having dipped to a 39 cent record low last Friday after a series of earnings downgrades and board turmoil.
A spokeswoman for Denny's development company, Central Real, told The Australian Financial Review the shareholding was a "passive long-term investment".