Garmin Ltd. (Nasdaq: GRMN) today announced that two family trusts, of which Dr. Min H. Kao, the company’s co-founder and Executive Chairman, is a co-trustee, have each established a pre-arranged trading plan to sell a portion of the respective trust’s shares in the company over a designated period. The 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, to minimize the market effect of share sales by spreading them out over a period of time, and to avoid concerns about initiating transactions while in possession of material non-public information.
Dr. Kao, his wife and children have been major shareholders of Garmin Ltd. since the initial public offering in December 2000. The Kao family, which currently owns approximately 14% of Garmin outstanding shares, intends to retain a majority of their current holdings. Any transactions under the plans will be disclosed publicly through Form 144 and Form 4 filings with the Securities and Exchange Commission.
The family trusts have adopted these plans for tax planning purposes.
About Garmin Ltd:
Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin is a registered trademark of Garmin Ltd. or its subsidiaries.
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