TOP NEWS: Micro Focus Proposes Shareholder Windfall After SUSE Sale

LONDON (Alliance News) - Micro Focus International PLC on Friday said it has completed the sale ...

Alliance News 15 March, 2019 | 5:02PM
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LONDON (Alliance News) - Micro Focus International PLC on Friday said it has completed the sale of its SUSE business and proposed return of proceeds to shareholders by way of B share scheme.

The FTSE 100-listed company first announced the disposal of Linux operating system owner in July last year for USD2.54 billion.

Taking into account the ongoing share buyback of USD110 million, Micro Focus said it intends to return the substantial majority of the after-tax proceeds from the disposal - currently estimated to be USD2.1 billion - to shareholders, after allowing for any required debt repayments, the level of which is currently being determined.

The software company said it expects to implement the return of value by way of a B share scheme which will enable all shareholders to participate equally in the return of value.

It is also expected that, subject to shareholder approval, completion of the return of value and the associated share consolidation will take place shortly following the general meeting and settlement will take place during May.

"This disposal demonstrates our relentless focus on our strategy of delivering value through a portfolio approach to software management," said Micro Focus Chief Executive Stephen Murdoch.

"The sale price of USD2.54 billion for SUSE reflects an excellent return on the investments we have made to support and grow this business during the past four years, and we are delighted to be in a position to return the substantial majority of that to our shareholders," added Murdoch.

Micro Focus shares closed up 1.1% on Friday at 1,915.72 pence each.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Micro Focus International PLC 1,950.50 GBX 2.01 -
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