The worst performer by some distance on the ASX 200 on Wednesday has been the Reliance Worldwide Corporation Ltd (ASX: RWC) share price.
The plumbing parts company's shares are down 6.5% to $4.56 in early afternoon trade.
As a comparison, the next worst performers are NEXTDC Ltd (ASX: NXT) and Syrah Resources Ltd (ASX: SYR) which are down 4% and 3%, respectively.
Why is the Reliance Worldwide share price sinking lower?
Investors have been hitting the sell button in a panic today after Reliance Worldwide announced that chairman Jonathan Munz would be retiring from the board after 33 years with the company.
In addition to this, the company has advised that Mr Munz's family company has sold its remaining 10% holding in the company via a $367 million block trade. The release advises that this trade was made at $4.65 per share, representing a discount of 4% from the last close price.
This follows the sale of a 20% stake via a block trade at $3.55 per share 18 months ago.
Mr Munz explained the reason for his departure: "Being Chairman of an ASX 100 company involves significant time and responsibility and I have decided to focus on other things. I have been involved with RWC for 33 years and it is now time to move on. I am very proud of what we have achieved. In that time RWC has grown from a domestic company focused only on Australia and turning over $14 million a year into a truly global organisation that is number one in the world in each of its major product areas and has annual sales well in excess of $1 billion."
He also expressed his confidence in the company and its future outlook. He said: "I am confident that this management team, supported by what is a very strong board of directors, has the growth prospects and resources to continue that impressive progress."
Should you buy the dip?
While the loss of such an experienced chairman is very disappointing, I agree that Reliance Worldwide is being left in very capable hands and has solid long-term growth prospects.
I think this could make it worth considering an investment in its shares following today's selloff.
