Quadrant has agreed not to sell more shares until the company releases its FY 2021 results.
Adore’s founders Kate Morris and James Height will earn $45.9 million each by selling 40 per cent of their holdings. Their individual stakes will fall from 19.3 per cent to 10.8 per cent each.
The founders’ remaining shareholdings will also be escrowed to prevent further sales, but for unspecified time periods.
Quadrant bought its 60 per cent stake in September 2019, leading some professional investors to ask why it has only waited just over a year to sell its ownership interest. The likely answer being that Quadrant believes now is a good time, given soaring e-commerce valuations.
On the plus side, Adore will still be led by its founders over the long term, with most great growth businesses on the sharemarket led by founders.
On face value, Adore looks a retail star