Best Buy Co., Inc. (NYSE:BBY) founder Richard Schulze will offload some of his massive holdings in the company after clinching on to the stocks for the past six years, according to a filing from the Securities and Exchange Commission (SEC).
The shares will be sold in the open market at different prices subject to an undisclosed minimum price threshold.
Schulze can sell off starting October
As per a prearranged plan, Schulze, who is the ex-chairman of Best Buy Co., Inc. (NYSE:BBY), could sell off part of his approximately 20 percent stakes in the company starting in October under a “personal long term strategy for asset diversification and liquidity”. There is, however, no revelation over how many shares will he sell, but the process will end in March 2014.
Schulze will not retain any control over when the shares will be sold—probably this measure will keep a check on company insiders from trading on nonpublic material information.
There was no response on the news from Schulze, but one person familiar with his plan said Schulze could carry out the sell off even after the plan expires “as warranted,” says a report from The Wall Street Journal.
Best Buy shares tripled in 2013
Best Buy Co., Inc. (NYSE:BBY) shares have recently recovered from record lows and have more than tripled in 2013, so far. Cutting on costs and slowing the rate of decline in sales helped the retailer to post better than expected result.
Last year, Schulze tried to convert Best Buy into a private company, but failed in his attempt. After the failure of his plan, Schulze backed management’s ongoing turnaround plan.
“We have a healthy engagement with Hubert and speak with him two or three times a week,” Schulze previously said. “We’re feeling good about our place and space at Best Buy.”
Schulze wishes to donate half of his wealth
In June, Schulze said that he and his wife wish to donate half of their total worth through the Richard M. Schulze Family Foundation, which will raise its worth from $100 million to $1 billion. The donation will contribute to kindergarten through 12th grade education and medical research.
“Our family is feeling good about this,’’ Schulze previously told a newspaper. “And I’m prepared to make meaningful contributions.”
Janney Capital Management retail analyst David Strasser said that it is timely for Schulze to start selling shares now as he turns 73 next year. Best Buy Co., Inc. (NYSE:BBY) stock has surged three times since December and closed at $35.81 on Monday. Strasser said that the foundation is a big part of his life now.