29th Oct 2013 10:58
LONDON (Alliance News) - Microgen PLC Tuesday said that it was proposing a tender offer for up to GBP10 million following its strategic review, amongst other proposals.
The IT services company began a strategic review May 13, and said that announcing this review has enabled it to explore a wider range of options and discussions that it might have otherwise been able to.
Microgen proposes a tender offer for up to GBP10 million, with a floating strike price between 120 pence to 130 pence per share. It will focus its Financial Systems Division business on increasing the proportion of revenue it derives from the Wealth Management sector through both organic growth and add-on acquisitions.
It will also invest in its Microgen Aptitude Solutions Division to pursue opportunities in the Big Data market. It intends to enact an acquisition strategy by becoming a holding company for a series of technology businesses and strategic investments.
Microgen will grant 3 million options, subject to shareholder approval, under its performance share plan to incentivise key staff. From 2014 it will reintroduce a regular programme of performance share plan awards subject to performance conditions.
"In conclusion, the board believes that the Microgen 2013 Strategic Review has achieved many, potentially conflicting objectives," Microgen said in a statement. "This balancing of business objectives and shareholder requirements has been challenging but the outcome should provide an excellent platform for the Microgen Group as the company enters its next phase."
Shares in Microgen were trading down 1.2% at 126.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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