Zoopla boss Alex Chesterman sells 4.25m shares in the company

Alex Chesterman, CEO and founder of Zoopla Property Group, has sold a tranche of shares for almost £14m – £13,812,500.

The statement confirming the transaction reads: “ZPG announces that it has been advised by Alex Chesterman that he has sold 4,250,000 ordinary shares of 0.1p each in the Group representing approximately 1% of the issued share capital of ZPG. The ordinary shares were sold on 19 September on the London Stock Exchange at a price of £3.25 pence per share.

“Following the sale, Alex continues to hold 8,514,453 ordinary shares in the Group as well as 5,179 ordinary shares by way of the ZPG share incentive plan, representing a total of over 2% of the issued share capital of ZPG.

“Alex’s remaining holding will be subject to a further lock-up that will be released after the close of trading on the third anniversary of the Group’s admission to trading on the London Stock Exchange (23 June 2017).

“Last year, the Board announced that it secured the long-term commitment of Alex to continue to lead the business and deliver its ongoing strategy.”

Meanwhile City analysts at Jefferies have said of Zoopla: “You ain’t seen nothing yet.”

The lengthy analysis by Jefferies says that Zoopla remains the top pick of all the stocks that it covers, “with customers returning from OTM”.

Its note to investors adds: “The rhetoric at the Capital Markets Day was slick but it was more than just talk. In property services, ZPG has become a net revenue generator (rather than a cost centre) for some of its clients. . . ”

The note from Jefferies describes Zoopla as a fighter brand.

Jefferies’ note goes on to say that it does not believe that cheap fixed fee price models are sustainable among estate agents. It does not think that hybrid agents will achieve more than 10% of market share.

Jefferies advised Zoopla at the time of its float.

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7 Comments

  1. Property Pundit

    Jefferies’ note goes on to say that it does not believe that cheap fixed fee price models are sustainable among estate agents. It does not think that hybrid agents will achieve more than 10% of market share’.  They might achieve the heady heights of 10% market share, could even go higher, but once the investor’s cash runs out and the TV/radio ads stop watch it drop like a stone.

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    1. Trevor Mealham

      Some of us have said this from the start. Cheap models facing cheaper models and bigger annual advertising costs to compete with the race to the bottom trend budgets SHOUT daily.

      The £49 and £99 list only and few hundred £’s budget models should think twice about what they wis for.

      Budget listers will exist, but the under £499 to £1,000 sell your house models now likely have a 3 year window before they go pop.

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  2. Trevor Mealham

    Could this be the start of the exit for Alex

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    1. P-Daddy

      It has approximately halved his holding. The market doesn’t seem too spooked at the moment but clearly he has taken advantage of the recent highs. Two reasons to sell normally…private issues or belief that it is the right time to profit take as it has gone as far as it can! Watch this space.

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    2. 1stTimeBuyer

      Highly unlikely, why leave a job half done.  Just look how Zoopla has changed in the last 18 months.  Also looks like he committed longer term just last year.  http://www.theguardian.com/business/2015/aug/12/zoopla-founder-alex-chesterman-new-pay-deal

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  3. Property Paddy

    I think a business model that pays estate agents to advertise and generates it’s revenue from ad ons could be the way to go.

    After all if you use the BBC do they not pay for content on their website?

    Most websites make their money through advertiser income (like google) or through selling products (amazon) only estate agents pay to advertise on websites when the website relies entirely on advertiser content.

    Just saying people

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    1. Chri Wood

      Including private sellers…

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