Craneware proposes capital reduction to boost shareholder returns

Published 01/08/2025, 16:40
Craneware proposes capital reduction to boost shareholder returns

EDINBURGH - Craneware plc (AIM:CRW.L), a provider of healthcare financial performance solutions, announced plans for a capital reduction aimed at creating distributable reserves to enhance shareholder returns.

The company outlined the proposal in a circular to shareholders on Friday, which includes a notice for a General Meeting scheduled for August 20, 2025, at the company’s Edinburgh offices.

If approved by shareholders and confirmed by the Court of Session in Edinburgh, the capital reduction would create additional distributable reserves of approximately $284.2 million, providing the company with greater flexibility to deliver returns through distributions or share repurchases.

The proposed process consists of two components: canceling the entire amount in the company’s share premium account and capitalizing the company’s merger reserve by issuing B Ordinary Shares followed by their cancellation.

Craneware emphasized that the capital reduction would not involve any immediate distribution or repayment of capital, share premium or merger reserve, and would not reduce the company’s underlying net assets.

Following shareholder approval at the upcoming General Meeting, the company expects to seek court confirmation with an initial hearing in late August and a second hearing around October 2025.

The capital reduction would become effective on the business day after the court order confirming the reduction is issued, according to the announcement based on a company press release.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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