Well, you probably need to take a closer look at the sub holder notice before jumping to any conclusions.
As you are probably aware, Orbis are an investment company but they allocate capital on behalf of specific customers in addition to their own in-house funds. A list of the funds under Orbis management who hold CER is always presented in their notices.
CER submits notices because it has a relevant interest in more than 5% of CER however as you will see, this is a combination of Orbis in-house funds and external funds under their management such as the Hostplus Super Fund and the Catholic Super Fund.
As you will also see on closer inspection, the 7.7m share reduction for SMAU (the Australian Super Fund) was due, in part, to a termination of association in April (it looks like Orbis were no longer being asked to manage the fund and therefore were not required to include the holding in their relevant interest). It is likely that ownership of the CER shares just moved from Orbis to SMAU.
The 15m share reduction for SMWK (the Warakirri Endeavour Fund) also appears to be due to a another transfer which probably took place recently.
So, in summary, the reduction in holding does NOT mean that all of the shares have been sold on-market. It may well just be as a result of the funds taking their shares back in-house.
In fact, had the SMAU association not been terminated earlier in the year, Orbis wouldn't have even been required to make the announcement today.
CER Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
