Shares of integrated pet-care business Greencross Limited (ASX: GXL) have come under heavy selling pressure today falling 8.8% to $7.28. They did fall to a low of $7.19 earlier after closing at $7.98 on Monday.
The fall can likely be attributed to a block-sale of the company's shares which was reportedly completed at $7.30 per share on Monday night.
According to The Australian Financial Review's, Street Talk, Credit Suisse is believed to have won a pitching contest for $80 million worth of the group's shares from private equity. A filing with the ASX this morning confirms that Credit Suisse now holds 12.77% voting power in the company with just under 14.6 million shares in total.
There has been plenty of speculation regarding Greencross in recent months, including the prospect of a takeover of the business. However, any offers have been rejected by the board and the sharp discount at which the company's shares were sold to Credit Suisse for overnight could cause some investors to question the value of the company's shares.
Indeed, the share price has rallied from around $4.50 in December to almost $8 yesterday, so a pullback in price was always possible. Greencross appears to be a quality business that is worth a closer look, although investors do have to be careful not to overpay for its shares.