XLMedia proposes £11m tender offer ahead of share suspension

(Sharecast News) - XLMedia announced a proposed return of up to £11m to shareholders via a tender offer on Friday, marking a second and final distribution from the proceeds of its business disposals.

The company, now an AIM rule 15 cash shell with no material trading operations, said it intended to repurchase up to 100 million ordinary shares at a fixed price of 11p each, representing a 16% premium to the closing price on 10 April.

It said the tender offer, subject to shareholder approval at a general meeting scheduled for 28 April, would see it buy back 70.9% of its current issued share capital.

The shares would subsequently be cancelled.

Following the offer, XLMedia's shares were expected to be suspended from trading on AIM on 14 May.

The board said the offer followed the January tender in which £14m was returned to shareholders through the repurchase of 121.5 million shares.

No further capital distributions were expected prior to the share suspension, with the board indicating that any future returns would depend on the outcome of the liquidation process and final tax settlements.

Premier Investissement SAS, a major shareholder, had irrevocably committed to tendering its 24.5% holding, while directors holding a combined 2.78% had also committed to tender their full holdings.

Qualifying shareholders may tender up to 70.9% of their holdings, with excess tenders to be accepted on a pro rata basis if other shareholders do not take up their full entitlement.

The company reported a cash balance of $35m as at the end of December, and received a further $11.2m in April from the final instalment of its European disposal.

A final $1m performance-related payment from Sportradar was due in early May.

The board said it had reviewed its liabilities, and determined the £11m distribution as the maximum prudent return at this stage.

At 1128 BST, shares in XLMedia were up 3.38% at 9.82p.

Reporting by Josh White for Sharecast.com.