Deliveroo slumps after founder Will Shu sells £47m of shares at well below listing price to pay tax bill
Deliveroo founder Will Shu has sold £47million of shares in the takeaway food group to pay a tax bill.
The 42-year-old offloaded 16.9m shares at 278p each – well below the 390p float price earlier this year.
The sale came after he was handed £62.5million of stock in the company he set up in 2013.
Tax bill: Deliveroo founder Will Shu offloaded 16.9m shares at 278p each – well below the 390p float price earlier this year
Finance boss Adam Miller was also handed shares worth £2.3million and sold £1.9million for tax purposes.
Deliveroo’s stock fell 9.5 per cent, or 27.5p, to 262.6p on the news, valuing the firm at £4.6billion. That is a far cry from the £7.6billion it was worth when it floated in London in March.
Shu and Miller both have long-term arrangements in place that reward them with new stock in the company – depending on how it performs.
Their huge tax bills are for shares that vested at the company’s float in March and every month since.
From next year on, the pair’s stock will vest annually instead.
Shu and Miller agreed when Deliveroo went public not to sell any shares for the first year.
But these deals were part of an exemption that allowed them to sell for tax purposes.
Deliveroo’s debut on the London Stock Exchange was a flop dubbed the ‘worst ever’ UK float.
It was valued at 390p per share when it went public but fell immediately when it began trading and only briefly surpassed the float price in August.
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