LONDON (Alliance News) - Bioquell PLC on Friday said its plan to return GBP42.7 million to shareholders through a tender offer has got underway.
In a statement, the company said the tender offer for half of its 42.7 million shares in issue will be made at 200 pence per share. Shares in Bioquell were up 7.5% at 177.35 pence on Friday morning.
Bioquell said it concluded that returning cash would be helpful amid a strategic review of its remaining biological contamination control business that began in May 2015. The company sold specialist testing services business TRaC Global Ltd for GBP44.5 million earlier that year.
"It has become clear from our discussions that having such a large amount of cash on our balance sheet is unhelpful within the context of the strategic review and accordingly we have concluded that we should proceed with returning the equivalent of a GBP1.0 per share in cash to Bioquell shareholders via a tender offer," Chairman Nigel Keen said in a statement.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.