Worley Ltd (ASX: WOR) shares are taking a sizeable tumble on Tuesday.
In morning trade, the ASX 200 stock is down 11% to $14.46.
This leaves the global professional services company's shares trading within a whisker of their 52-week low.
It also means that Worley shares are now down by a disappointing 17% since the start of the year.
As a comparison, the ASX 200 index is up almost 1% over the same period despite recent weakness.
Why is this ASX 200 stock crashing?
The catalyst for the weakness in the Worley share price on Tuesday has been news that a major shareholder has sold down its holding.
In response to media speculation, Worley confirmed that it believes its largest shareholder, Sidara, has completed a block trade on Tuesday.
Sidara, which was formerly known as Dar Group, had a 23.58% stake at the last count.
However, the company "understands that Sidara has undertaken a sale of an interest of approximately 19% in Worley by way of an underwritten block trade executed this morning."
While the company has not provided any details with respect to the price that the block trade was undertaken at, looking at ASX trade history on Tuesday, Sidara appears to have received $14.35 per share or $1,435 million in total.
The former represents a discount of 12% to where the ASX 200 stock was trading at Monday's close.
Management commentary
The ASX 200 stock's CEO, Chris Ashton, was upbeat despite news of the sale. He said:
We appreciate the support of continuing shareholders who have invested more in our future and welcome the new shareholders who will join our register following Sidara's block trade. As a leading global provider of sustainability solutions, Worley continues to be well placed to benefit from long-term growth resulting from structural changes in our end markets. We're bridging two worlds, moving towards more sustainable energy sources, while helping to provide the energy, chemicals and resources needed now.
This sentiment was echoed by the company's chair, John Gill. He adds:
Worley was founded in Australia in 1971 and over 50 years, has become a global professional services company of energy, chemicals and resources experts. The business has grown to encompass nearly 50,000 people across 45 countries and is headquartered in Australia. Worley has become a company of critical national significance and is a key driver of the global shift to sustainable energy.
While news of a big sale can be alarming. It is worth remembering that for every sale there has to be a buyer. So, clearly some investors have run the ruler over the company and believe they are getting a great deal buying at current levels. Time will tell if that is the case.
