LONDON - FD Technologies plc, a UK-based company, has announced its proposal to return up to £120 million to its shareholders through a tender offer, following the sale of its First Derivative Business to EPAM Systems, Inc. The tender offer will allow shareholders to sell back their shares at a premium price.
The company revealed that the tender offer would involve the purchase of up to 6,153,846 ordinary shares at £19.50 per share, representing a 3.7% premium over the closing price on December 18, 2024. This price is also 2.2% higher than the volume-weighted average price over the previous five trading days.
The tender offer, which is subject to shareholder approval at a general meeting scheduled for January 15, 2025, is expected to represent approximately 21.8% of the company's issued share capital as of the tender offer record date. FD Technologies intends to cancel all shares acquired through this offer.
The directors of FD Technologies have unanimously recommended that shareholders vote in favor of the tender offer resolution and have expressed their intention to vote accordingly, though they will not participate in the tender offer with their own shareholdings.
The offer is set to open on December 20, 2024, and will close on January 22, 2025. Payment for the shares tendered successfully is anticipated to be dispatched to qualifying shareholders in January 2025.
FD Technologies outlined the benefits of the tender offer, emphasizing that shareholders have the option to participate and potentially reduce their holdings at a market-driven price with a premium, or to maintain their investment in the company. Additionally, the offer is structured to be inclusive of all qualifying shareholders, irrespective of their shareholding size.
Should the tender offer be undersubscribed or not proceed, the company's board intends to distribute any remaining funds up to the £120 million total via a special dividend.
A circular detailing the tender offer terms and conditions, along with instructions for shareholders on how to participate, is being sent to qualifying shareholders and will also be available on the company's website.
This news is based on a press release statement issued by FD Technologies plc.
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