new-recommended-broker-banner new-recommended-broker-banner

Hochschild Mining Shares Plunge 18.75% After Its Chairman Sold a 12% Stake

Updated: 3 Dec 2020

Shares of Hochschild Mining Plc (LON: HOC) plunged 18.75% today after the company revealed that its Chairman Eduardo Hochschild had sold a 12% stake worth £123 million ($164.7 mln)in the miner through his holding vehicle Pelham Investment.

Hochschild who is the chairman of the silver and gold mining company still owns 197 million shares, or approximately 38% of the company, which is still a sizeable chunk. Investors apprehension about the sale was reflected in the massive price drop experienced today, which is understandable.

Company executives have been known to sell their shares when a business is in trouble given that they usually know more about the company’s operations than public shareholders most of whom have little knowledge of the day to day operations of a company.


JP Morgan, which was the sole book-runner for the divestment said: “The sale is subject to demand, price and market conditions, and, in particular, the number of placing shares may be changed,”

Adding: “The price at which the placing shares are to be placed and the final number of placing shares will be agreed by the Seller and JPMorgan Cazenove at the close of the book-building process.”

The investment bank clarified that Eduardo Hochschild was still committed to the family business, which was founded over 100 years ago, but that he needed the capital to fund investments in his other businesses and in new opportunities.

Hochschild Mining share price

Tradingview chart of Hochschild Mining share price 03122020

Hochschild Mining shares plunged 18.75% today to trade at 192.4p having fallen from Wednesday’s closing price of 236.8p.

People who read this also read:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .