|
Nanoco Group PLC on Tuesday said it plans a capital reduction to pave the way for shareholder returns. The quantum dots manufacturer, fresh from landing a $150 million settlement in a litigation against Samsung Electronics Co, proposes a capital reduction to create distributable reserves. Nanoco stands to receive $75 million from the second tranche of proceeds from its Samsung settlement. The funds are expected to be received in February 2024. It plans to return between £33 million and £40 million, around 10 pence to 12p per share. ‘No final decision has yet been taken as to the method of any such return of capital,’ Nanoco said. It plans to retain £20 million of cash to invest in the commercial activities, research and development and debt obligations. ‘The proposals in relation to a capital reduction and the proposed return to shareholders are consistent with our stated intention to balance the investment needs of Nanoco’s growing organic business whilst delivering a material return of capital to shareholders following the Samsung litigation,’ Non-Executive Chair Christopher Richards said. ‘The board considers the resolutions to cancel the company’s share premium account and capital redemption reserve to be in the best interests of the company and its shareholders as a whole and the board unanimously recommend that shareholders vote in favour of the resolutions to be proposed at the general meeting.’ Nanoco in February said it signed $150 million settlement with Samsung for IP infringement. Nanoco in January had warned that it had not struck as big a knockout blow as it would have liked in the David versus Goliath legal battle. It said at the time that the settlement with Samsung was expected to be ‘towards the lower end of the range of expectations’. Nanoco claimed Samsung infringed on its unique synthesis and resin capabilities for quantum dots. Quantum dot technology is used on Samsung quantum light-emitting diode televisions. Copyright 2023 Alliance News Ltd. All Rights Reserved.
|
