CEO, Miles Dally sold R3m worth of shares in RCL since Listeriosis outbreak
CAPE TOWN - CEO of RCL Foods, Miles Dally sold more than R3 million worth of shares in RCL Foods.
RCL Foods, the parent company of Rainbow Chicken was just last month hit by a crippling health scandal, rooted in the listeriosis outbreak.
At the end of March last month, the company’s share price fell 1.42 % to close the day at R18.73 on the JSE.
Today, the share price stands at R18.99.
The JSE-consumer goods company estimated the company’s loss to be R75 million.
According to the company’s disclosures, Dally reportedly cashed in 14.6% of his shares, according to Business Insider.
The CEO allegedly engaged in three more transactions by selling R2.12 million worth of his shares.
Dally sold his shares at approximately R18 per share in a total of six transactions between the period of March 29 and April 10.
In essence, Dally sold a total of 175 856 shares.
RCL’s chief legal officer, Stephan Heath reportedly said that the sale took place during a ‘rare’ period where executives could sell their shares for a specific amount of time.
Earlier this week, it was reported that the listeriosis crisis has 'crippled' the pork industry.
Since the outbreak, pork producers lost profits of up to 40%. This, in turn, led to millions of rands in losses for pig farmers.
CEO of the SA Pork Producer's Organisation, Johann Kotzé said the recall of cold meat products has severely affected the pork industry.
In KwaZulu-Natal, a pork processing facility reportedly shut down. This led to more than 200 000 job losses.
Since the Enterprise factor had been identified as the cause of the outbreak the factory in Polokwane, the Enterprise factory in Germiston and their abattoir in Clayville has since been closed.
Kotzé says that new and small-scale farmers could be impacted the most, explaining that they would not be able to supply at the same scale as commercial farmers which could negatively impact them.
South Africa has about 125 commercial pig farmers and 400 upcoming pig farmers.
READ MORE: Pork industry dwindles after listeriosis outbreak
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- BUSINESS REPORT ONLINE