2nd Feb 2015 17:25
LONDON (Alliance News) - Computacenter PLC Monday said it is going to return GBP100 million to shareholders as it sold IT disposal and recycling subsidiary RD Trading Ltd for GBP56 million.
Computacenter said its "cash generative nature" and the proceeds from the disposal mean its net cash balance exceeds current requirements.
"While the company intends to continue to maintain a robust and prudent balance sheet, the directors believe that it is now appropriate to undertake a return of capital to shareholders," Computacenter said.
In a statement, the IT infrastructure services provider said it had agreed to sell its wholly owned subsidiary RD Trading to Arrow Electronics UK Holding Ltd. According to Computacenter, RD Trading's activities are non-core to the group, and the disposal will allow it to focus its investment for growth on the delivery and implementation of its services-led strategy.
The company said the effect of the disposal on its operational systems and processes is minimised because RD Trading was not operationally integrated within the group, although it was integrated into its customer proposition.
Computacenter said it has entered into a five-year operating agreement with RD Trading, under its new ownership, for the provision of IT Disposal Services, which remain a part of Computacenter's customer proposition.
The shareholder return consists of a capital reorganisation, including the issue and allotment of B shares and an associated share capital consolidation.
Computacenter shares closed down 1.7% at 630.50 pence on Monday. The announcement came after the market closed.
By Samuel Agini; [email protected]; @samuelagini
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