Woolworths chairman Gordon Cairns lifts shareholding in retailer

Chairman Gordon Cairns spent $120,000 on Woolworths stock the day after Lowe’s legal salvo over Masters.

Woolworths chairman Gordon Cairns, right, with CEO Brad Banducci. Pic: Brett Costello

Woolworths chairman Gordon Cairns appears unperturbed by legal action pursued by the retailer’s home improvement joint venture partner this week, sharply lifting his holding in the company the day after court proceedings became known.

In a filing to the market this morning, Woolworths (WOW) revealed Mr Cairns purchased almost $120,000 worth of shares through the custodian of his super fund on Tuesday.

The on-market acquisition of 4,900 shares was made at $24.34 a share and brings his total tally to 13,600 shares.

The timing of the acquisition is intriguing, with Mr Cairns seen unable to buy stock in the lead-up to the group’s well-received earnings August 25 result.

While he was free to purchase shares in the immediate aftermath of the result, he opted to wait until the share price recovery faded, which coincided with both broad market weakness and issues raised over its planned home improvement exit on Monday.

The retailer’s shares have continued their retreat since Mr Cairns bought in, trading down 1 per cent through Friday’s session at $23.68.

Woolworths has only gained in one of the six sessions since the day of its results forced a surge in its valuation, with analysts cautious the early signs of a turnaround have caused too much euphoria and traders also eyeing the prospect of a speed bump to its divestment of the troubled Masters operation.