UPDATE 2.50pm: Former iiNet boss Michael Malone looks to have further sold down his stake in the Perth internet service provider he founded.
Mr Malone has sold 1.2 million shares in the company, netting nearly $8.5 million and meaning he is no longer a substantial shareholder.
An ASX notice showed the sell-down was through a series of on-market transactions between March 26 and yesterday.
Mr Malone sold the shares through his private company Beata Malone and related entity Perth Internet Pty Ltd.
The sale will further focus attention on a possible merger deal with iiNet major shareholder TPG, which holds a 6.32 per cent stake in the company.
In August last year, Mr Malone sold five million iiNet shares, netting $28.5 million and reducing his stake in the company from 8.72 per cent to 5.6 per cent.
The latest sale puts his stake below 5 per cent.
iiNet shares were up 17 cents, or 2.36 per cent, to $7.37 at the close of trade.