Guzman y Gomez (ASX:GYG) shares fell in early trade after early investor TDM Growth Partners sold 3.5 million shares in the fast food chain for about $89.5 million.
TDM confirmed on Wednesday it was behind the block trade, which was completed off-market at $25.55 per share.
GYG shares were down around 1% at $26.43 in early trade.
Second major selldown
The transaction comes just a week after GYG chairman Guy Russo sold around $35 million worth of shares in the restaurant group, adding to investor attention around recent insider and cornerstone shareholder selling.
The latest transaction reduces TDM’s holding but it remains a major shareholder in the business.
TDM retains 14% stake
Following the sale, TDM holds 14.055 million GYG shares, representing about 14% of total ordinary shares on issue.
The investment firm said it remained positive on the company’s longer-term prospects despite reducing its position.
“We remain highly attracted to GYG’s world-class economics and compelling growth trajectory and we intend to remain a significant shareholder of the business for many years to come,” TDM said.
GYG continues to pursue an aggressive store expansion strategy in Australia and overseas, with investors closely watching whether growth can support the company’s premium market valuation.