Esprit Holdings chief executive Michael Ying Lee-yuen was last night set to cash in at least HK$595 million by selling a 3 per cent stake in the fashion retailer. Mr Ying's share placement was the second by a majority shareholder in a Hong Kong-listed company in two days. On Tuesday, the Tsai family, a substantial shareholder in Yue Yuen Industrial (Holdings), and some directors, attempted to raise about HK$61.6 million by placing 40 million shares at HK$15.40 each. Yue Yuen announced yesterday the placement had been successfully completed. In his placement, Mr Ying offered 40.5 million shares for between HK$14.70 and HK$14.95 each, arrangers Merrill Lynch said in an e-mail to brokers. The price represented a 2.6 per cent to 4.23 per cent discount to Esprit's closing price yesterday of HK$15.35 - down 1.91 per cent from Tuesday. The placement was proceeding last night and neither Merrill Lynch nor Mr Ying could be reached for comment. Prior to the placement, Mr Ying's Esprit shareholding was 42 per cent. The share sale was the chief executive's second in recent months. In February, he disposed of 2.23 million shares for HK$34 million, according to a stock exchange document. Analysts said substantial shareholders moving to liquidate their holdings was not a good sign for the market, as it indicated a negative outlook. 'The Hang Seng Index is struggling to reach the pre-Sars level of 9,100 and yet major shareholders seem to tell you that they think the current share price is too high,' said one analyst. Core Pacific analyst Bonnie Lai said she was not surprised by Mr Ying's share sale as he had been disposing of his Esprit stake from time to time. Last month, Esprit said its sales were being hit as the Sars outbreak kept customers away. Esprit posted a HK$555 million net profit for the six months to December last year - up 44 per cent year on year - as turnover leapt 31 per cent to HK$6.06 billion. The company expects its United States operation - seen as a future growth engine - to contribute US$120 million in sales by 2005. Graphic: espr08gbz