D I R ECTO R S’ D E A L I N GS

Leon Kirkinis and Simon Susman both sold shares this week in the companies closest to their hearts. Both men are the largest individual investors in their respective companies, which both joined in 1995. But that is where the similarities end.

Kirkinis, long-serving CE of African Bank Investments (Abil), says he is selling because his company is in financial trouble, needing more of his cash to recapitalise.

He will use the R2,9m proceeds from the sale of 220 000 shares to take up his allocation in the R5,5bn rights issue that Abil has recently embarked on.

Had Kirkinis sold in January, he would have received about R7m for the same number of shares.

The company needs the money to bolster its balance sheet, which has suffered the vagaries of bad debt that have afflicted the unsecured lending market over the past two years.

Woolworths chairman Susman, on the other hand, does not need the almost R14m in cash that he pocketed when selling 184 000 of his shares in the retailer at R74,50.

Woolworths hit a record high of R81,85 in May. Susman, who retired as Woolworths CE in 2010, has previously said he would need to diversify his personal investment portfolio.

While the cash-lending Abil has more than halved in value since January, Woolworths has been increasing earnings through cash and credit sales of its merchandise in its 900 local stores this year.

Sikonathi Mantshantsha