Indigovision to return money to investors
Video security group Indigovision has announced plans to return about £850,000 to investors through a share buyback programme.
The Edinburgh-based company said it would seek to buy back up to 375,000 shares – amounting to about 5 per cent of its issued share capital – by using its existing cash resources to make market purchases “from time to time”.
Aim-quoted Indigovision, which last week said that its outlook was “more positive than it has been for some time” following an improvement in sales and orders, said the buyback scheme would benefit its earnings per share and help to close a “persistent gap” between the market value of the company and the board’s assessment of its intrinsic value.
The firm, led by chief executive Marcus Kneen, added that its board’s policy was to maintain a “strong balance sheet” with net cash resources to provide the flexibility for investment “should the right opportunities arise”.
Nominated adviser N+1 Singer has been tasked with executing the share buybacks, with a maximum price to be paid of no more than 105 per cent of the average closing price for the five days leading up to any purchase.
Indigovision’s largest shareholder is Swiss investment fund New Pistoia Income, which has a stake of almost 30 per cent. The City’s takeover panel has confirmed that any purchase that takes New Pistoia’s holding above the 30 per cent threshold will not trigger an obligation for it to mount a full takeover offer for the company.