Rubicon director Hugh Fletcher uses share slump as buying opportunity
Rubicon director Hugh Fletcher, who once headed up conglomerate Fletcher Challenge before it was broken up, has used the recent slump in the biotech firm's share price to buy stock on the market.
Fletcher, who chairs the company's Rubicon Share Price committee responsible for decisions by the group to deal in Rubicon shares, bought 60,000 shares at an average price of 22c on January 26, according to a notice lodged with the stock exchange. He now owns almost 5.8 million shares, or 1.4% percent of the company, worth about $1.2 million at today's closing price of 21c .
The businessman last bought shares on the market in October, buying 60,000 shares at an average price of 33 cents.
Rubicon's share price has dropped by more than a third, or 12c , since early September when the company said its joint venture ArborGen looked likely to lose a dispute with former staff. The former employees have since been awarded $US53 million in damages, interest, and costs, though Rubicon, along with co-owners International Paper and MeadWestvaco, plans to appeal the case.
The Rubicon directorship is Mr Fletcher's last link to Fletcher Challenge after he retired in 2012 from the board of Fletcher Building, another company spun out of the former conglomerate.
Rubicon owns a third of ArborGen and has a controlling stake in NZX-listed wood mouldings maker Tenon.