FD Technologies proposes £120m tender offer to shareholders

FD Technologies confirmed plans to return up to £120m to shareholders on Thursday, through a tender offer following the disposal of its First Derivative business to EPAM Systems.

The AIM-traded firm said shareholders would vote on the proposal at a general meeting on 15 January.

Under the offer, FD Technologies said it would buy back up to 6,153,846 shares at 1,950p per share, representing about 21.8% of its issued share capital.

It said the offer price reflected a 3.7% premium to the closing price of 1,880p on 18 December, and a 2.2% premium to the five-day volume-weighted average price.

The tender offer would open on 20 December, and close on 22 January.

Shares acquired through the tender offer would be cancelled, potentially enhancing earnings per share if profits remained stable.

FD Technologies said participation was optional, allowing shareholders to reduce their holdings or maintain their investment.

For those who opted not to participate, the company said it was exploring a supplementary special dividend if the full £120m was not used through the tender offer.

The board said it was unanimously recommending shareholders vote in favour of the resolution, though its directors did not intend to participate in the tender offer for their personal holdings.

Consideration for successfully tendered shares was expected to be distributed in January.

At 1210 GMT, shares in FD Technologies were down 0.53% at 1,870p.

Reporting by Josh White for Sharecast.com.