Food company shares in massive surge
SHARES in embattled Donut King owner Retail Food Group have soared 41 per cent higher today after investors piled into the stock.
The surge followed Morgan Stanley and associated companies filing a substantial holder notice with the ASX stating it held 113 million shares or a 5.34 per cent stake in RFG.
The multinational investment bank and financial services company has been steadily adding to its holdings on behalf of clients in the past several months and became a substantial holder on May 1 when it bought 30 million shares for a total cost of $1.5 million.
By 2.14pm RFG shares were 41 per cent higher than at the start of trade at 7.8c, adding $48.87 million to its market capitalisation.
The stock price is still miles from where it was before allegations of mistreatment of franchisees came forth in late 2017, triggering the RFG shares to fall steeply and triggering a parliamentary inquiry into the sector.
That inquiry recommended an investigation by the Australian Competition and Consumer Commission, which is reported to be weeks away from releasing its findings.
Originally published as RFG shares in massive surge