4th Dec 2019 13:28
(Alliance News) - TruFin PLC on Wednesday proposed a GBP5 million tender offer, but warned that it may have to sell off some units if a major investor decides to divest its holding in the financial technology firm.
The tender offer, which is subject to approval at a TruFin general meeting on December 23, would see the firm purchase 11.1 million shares at 45 pence each. The shares represent just over 12% of the company's share capital.
Shares in TruFin were untraded in London on Wednesday afternoon, last quoted at 48.00p each.
Arrowgrass Capital Partners LP, which holds a 74% interest in the company, backed the tender offer, TruFin said.
The company said it is trading in line with expectation in its fourth quarter, with its units experiencing "good demand".
TruFin added: "The board is progressing a review of the company's future strategy and will update shareholders when the review is concluded. The review builds upon initiatives that have already been effected by the board such as the cost saving measures to strengthen the group's balance sheet and the recent significant restructuring."
The company also added that it may be forced to dispose of some subsidiaries if Arrowgrass does divest its investment in the company.
In September, Arrowgrass said it will close the Arrowgrass Master Fund Ltd, which is an operating company that aims to grow financial technology and banking businesses and holds the 74% TruFin stake.
TruFin said on Wednesday: "As a consequence of these factors and following recent discussions with Arrowgrass, the board notes that the outcome of this review may include proposals to dispose of and/or reduce the operations of certain subsidiaries in order to accelerate further returns of value to shareholders."
By Eric Cunha; [email protected]
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