Listed IT group, Redcentric, is planning to return £90m to its shareholders.
The Harrogate-based IT managed services provider explained that the decision was made to “simplify the share register and reduce future costs.”
The tender price of £1.60 per ordinary share represents a premium of around 30.9% – based on the share price yesterday.
In the announcement to the Stock Exchange, the company stated that shareholders would have a basic entitlement to tender approximately 35.3% of the shares they held.
The maximum number of shares available to be bought under the offer is 56,250,000 Ordinary Shares (35.3% of the issued ordinary share capital).
Redcentric’s directors said that they hoped to be able to implement a share capital restructuring, where a large number of minority shareholders with fewer than 20 ordinary shares could exit.
That would “significantly reduce the ongoing administrative burden and cost to the company.”
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“The Board is delighted to propose a return of up to £90 million to Shareholders through the Tender Offer at £1.60 per share,” said Richard McGuire, Chairman.
“Together with the proposed Share Capital Restructure, this demonstrates our commitment to delivering value while simplifying the share register and reducing future costs. They provide an opportunity for those wishing to realise value, while leaving Redcentric strongly capitalised to pursue its MSP growth strategy.”
It will be subject to approval at next month’s General Meeting.
