Tims' CEO purchased $3.3-million of shares during IPO

Tim Hortons Inc.'s top executive Paul House bought more than $3.3-million worth of company stock on the day it went public last week…Mr. House is up about half a million dollars so far.

The Globe and Mail
March 29, 2006

Tims' CEO purchased $3.3-million of shares during IPO
Andy Hoffman

Tim Hortons Inc.'s top executive Paul House bought more than $3.3-million worth of company stock on the day it went public last week.

The Oakville, Ont.-based coffee and doughnut chain's president and chief executive officer purchased 123,000 shares at the initial public offering price of $23.16 (U.S.) on March 24, according to a filing with the U.S. Securities and Exchange Commission.

The transaction represented the largest individual share buy for a company executive or director. Tims chairman John Schuessler, who is also the president and CEO of Wendy's International Inc., bought 12,000 shares worth $277,920.

Wendy's still owns roughly 82 per cent of Tim Hortons. The Dublin, Ohio, fast-food chain plans to spin off the rest of the company to shareholders in a special stock dividend by the end of the year.

Yesterday, shares declined for a second day, slipping 74 cents (Canadian) or 2.4 per cent to close at $30.92 on the Toronto Stock Exchange. Nonetheless, Mr. House is up about half a million dollars so far. His shares were worth slightly more than $3.8-million at yesterday's closing price.

Tims chief financial officer Cynthia Devine and marketing head William Moir bought 38,000 shares at the IPO price for $1.02-million. At yesterday's closing price, each executive's stake was worth $1.17-million.

Investment bankers allocated 10 per cent of the IPO for Tim Hortons employees and franchisees.

Yesterday, Tim Hortons said the underwriters had exercised an option to purchase an additional 4.35 million shares. After deducting $54-million in fees, net proceeds were $846.4-million.


Brought to you by WikidFranchise.org

Risks: Initial public offering, IPO, Pump-and-dump scheme, Canada, United States, 20060329 Tims CEO

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License