Original URL: http://www.channelregister.co.uk/2008/03/12/northamber_cash_return/
Northamber announces £2.94m cash return
Surplus to requirements
Posted in IT Channel, 12th March 2008 11:21 GMT
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Computer distie Northamber intends to return £2.94m, or ten pence a share, to shareholders because it is surplus to working capital requirements.
The Surrey-based firm said yesterday that the proposed return of cash will be made by splitting existing ordinary shares into new ordinary shares and C shares, as well as the expected acquisition of the C shares by stockbroker Walker Crips.
Shareholders will be asked to approve the cash return, which currently represents about 18 per cent of Northamber’s market capitalisation, at an EGM on 3 April.
If the proposal gets the go-ahead, shareholders will get one new share and one C share for each existing share they hold on 2 April.
All the C shares received by shareholders may be purchased by Walker Crips on 3 April for £3.06m, which represents ten pence per C share plus expenses, Northamber said in a statement (http://www.investegate.co.uk/article.aspx?id=200803111550348614P&fe=1).
Just last week the company reported a first half rise in pre-tax profit and revenue, helped by a moderate trading recovery and an overheads cutback.
Northamber shares are currently trading at 55.5 pence, up more than 2.5 per cent, on the London Stock Exchange. ®