The Tyro Payments Ltd (ASX: TYR) share price is out of form and sinking notably lower on Tuesday.
In afternoon trade the payments company's shares are down 6% to $4.04.
Why is the Tyro share price sinking lower today?
The catalyst for today's weakness in the Tyro share price has been the selling of shares by a major shareholder.
According to a change of substantial shareholder notice, TDM Growth Partners has sold 35 million Tyro shares via a block trade to a range of institutional investors.
The Sydney based investment firm agreed a price of $4.055 per share, which represents a 5.5% discount to the last close price. It also values this parcel of shares at just under $142 million.
No explanation was given for the sale. But with the Tyro share price up over 47% from its December 2019 IPO price of $2.75, it appears as though the investment firm wanted to lock in some of these mouth-watering gains.
In addition to this, TDM Growth Partners has ceased to have a relevant interest in a further ~8.3 million shares. The notice explains that this change reflects an agreement between the investment firm and some of its clients which means that TDM Growth Partners no longer controls those shares.
Following both the sale and the change of relevant interest, TDM Growth Partners is no longer a substantial shareholder. However, its co-founder Hamish Corlett will remain a non-executive director of Tyro Payments.
Mr Corlett has also advised that he did not participate in the sale with any of his own shares. At the last count the director had a direct interest of 181,819 shares and 68,000 options.
Finally, TDM Growth Partners has advised that any remaining shares controlled by the investment firm will not be sold until after its half year results release next year.
