Nanoco Group PLC, a leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials, has announced a proposed return of up to £33.0 million to shareholders. The company will conduct a Tender Offer to return up to £30.0 million to shareholders and intends to return a further sum of up to £3.0 million by way of an on-market share buyback of Ordinary Shares. The Tender Offer is being made at a fixed price of 24 pence per Ordinary Share, representing a premium of 25.1 per cent. to the closing mid-market price per Ordinary Share on 8 March 2024.
The Tender Offer is for up to 38.5 per cent. of the Company's issued share capital, with the Share Buyback Programme having the potential to acquire a further 3.9 per cent. of the Company's issued share capital. Shareholders will be able to decide whether to tender none, some, or all of their Ordinary Shares within the overall limits of the Tender Offer. The Tender Offer is conditional on Shareholders' approval, and a general meeting of the Company is to be held on 28 March 2024 to seek the approval of Shareholders to the proposed Return of Value.
Christopher Richards, Non-Executive Chairman of Nanoco, stated, "Today Nanoco is announcing an exceptional and significant return of capital to shareholders, while retaining and investing funds to support delivery of further value from commercial prospects and enhance our future growth and margin profile. With growing opportunities and a fully funded commercial business, we are confident in enhancing shareholder value over the medium and long term."
The proposed return of value follows the receipt of the Final Litigation Proceeds from Samsung, amounting to a net sum of $71.75 million, which has been converted to a sterling receipt of £58.8 million. The Board previously announced its intention to return significant funds to shareholders after signing the final settlement agreement with Samsung.
The Circular setting out the details of the proposed return of value to shareholders will be posted later today, providing shareholders with the opportunity to participate in the Tender Offer and Share Buyback Programme. Shareholders may decide not to participate fully or partially in the Tender Offer for various reasons, including their view of the potential for the value of the Company to increase in the future. If a material amount of the £33.0 million is not returned through the Tender Offer and Share Buyback Programme, the Board will consider a possible further stage of the Return of Value comprising a Special Dividend.