Garmin Ltd has confirmed that Dr Min Kao, the company’s co-founder, Chairman and CEO, and two family trusts, of which he is a trustee, plan to ‘sell a portion of their shares in the company over a designated period.’
Dr Kao, his wife and children have been the largest shareholders of Garmin since the company’s initial public offering in December 2000. Following the disposal, the family will continue to retain more than 20% of outstanding Garmin shares, and will continue to maintain the largest position in Garmin.
These plans represent the first sale of any Garmin shares by Dr Kao and his family since previous trading plans filed in 2005 and 2006. Dr Kao and the family trusts adopted the plans for tax planning purposes. Any share transactions under the plan will be disclosed publicly through Form 144 and Form 4 filings with the Securities and Exchange Commission.
The pre-arranged trading plans were adopted in accordance with Rule 10b5-1 of the Securities and Exchange Act of 1934.
Rule 10b5-1 allows corporate officers and directors to adopt written, pre-arranged stock trading plans when they do not have material, non-public information. Such programs provide for regular selling of a predetermined, fixed number of company shares in order to gradually diversify the individual’s investment portfolio, minimize the market effect of share sales (by spreading them out over an extended period of time) and avoid concerns about initiating transactions while in possession of material non-public information.
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