(Reuters) - Green Mountain Coffee Roasters Inc’s GMCR.O former chairman Robert Stiller sold his stake in Krispy Kreme Doughnuts Inc KKD.N on Monday, a regulatory filing showed.
The sale comes to light a day after Stiller was removed from his position at Green Mountain for selling his shares in the company at a time when trading by insiders was prohibited.
Stiller, who was Krispy Kreme’s second largest shareholder, sold about 8.1 million shares in the doughnut chain, according to a regulatory filing. His stake was valued at about $51.4 million based on the stock’s closing price on Tuesday.
On Tuesday, Stiller was removed as Green Mountain chairman for selling his shares to cover margin calls, following a near 50 percent drop in Green Mountain’s stock price since it reported disastrous quarterly results last week.
A margin call occurs when investors, who borrow money from banks or brokerages using their stock holdings as collateral, sell off shares to repay loans after the value of those holdings falls beyond a threshold.
Stiller had also sold 1 million of Green Mountain’s shares in February and most recently cut his holding in the company to roughly 6 percent.
Green Mountain’s lead director William Davis was also demoted as he sold 400,000 shares last Friday and another 148,000 shares on Monday to cover margin calls.
Krispy Kreme shares rose 3 percent on Thursday afternoon on the New York Stock Exchange.
(Corrects to clarify that Stiller’s Krispy Kreme stock sale happened before he was removed from his position at Green Mountain. Also clarifies that Stiller’s removal took place on Tuesday)
Reporting by Arpita Mukherjee in Bangalore; Editing by Viraj Nair