Recruitment group CPL will hold an extraordinary general meeting this afternoon to vote on the company's plans to return € 25 million in capital to shareholders by way of a tender offer. As the group's largest shareholders, chief executive Anne Heraty and her husband, director Paul Carroll, are likely to net just under €9 million from the transactions.
The company first disclosed plans for a tender offer back in September, when it said that a return of surplus capital “is in the best interests of shareholders”.
Ms Heraty owns just under 30 per cent of CPL’s shares while Mr Carroll holds 5.9 per cent.
CPL has continued to generate positive cash flow and as a result has built up a net cash position of € 33.6 million at 30 June 30th 2017. Having considered other options for this cash, such as acquisition an disinvestment opportunities, the board (with the exception of both Heraty and Carroll) unanimously voted for a return of surplus capital.
The tender offer is being made to qualifying shareholders at a price per share of € 6.75, representing a premium of 15.2 per cent on the share price on September 6th.
In a note, Goodbody Stockbrokers said that the offer signifies “confidence” in the group’s forecast cashflow generation, but also an “indirect acknowledgement” that the number of deals over the near term is likely to be limited.
“As such, post the offer we see the share price reverting to the fundamentals of the primary markets of interest, Ireland and the UK”.
