Cherry CEO under investigation for insider trading
Operator appoints chairman of audit committee as acting CEO after Holmgren is arrested
Cherry Group CEO, Anders Holmgren is under investigation for insider trading, the operator has announced.
The Swedish Economic Crime Authority, the country’s equivalent of the FSA, yesterday carried out a search of the operator’s head office in Stockholm and Holmgren was subsequently arrested.
A statement released by the firm said it would fully cooperate with the Authority. Chairman of the Cherry Audit Committee, Gunnar Lind, will take on the role of acting CEO during the investigation.
At the time of the announcement Cherry shares dropped 3% to SEK 67.
According to Swedish news outlet privataafferer.se, Holmgren bought shares in Cherry in March, a few weeks before the firm issued a positive trading update in mid-April, although it is still unknown exactly what the charges relate to.
Earlier this month the group reported Q1 revenues of SEK 681m (£56.5m), up 26% on the previous year, and 1% higher than its projected figures for the quarter.