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Micro Focus International shares fall 11% after it sounds alert over HPE Software revenues

"Whilst the short term decline in licence [revenue] is disappointing it is not unusual given the level of change being undertaken," said chairman Kevin Loosemore
Micro Focus International shares fall 11% after it sounds alert over HPE Software revenues
Revenues have fallen around 10%

Shares in Micro Focus International (LON:MCRO) fell 11% after it said software revenue at Hewlett-Packard Enterprise, the US company it is buying for £6.8bn, was down around 10% for the year.

The company is currently implementing an efficiency programme at HPE and early progress has been “encouraging”, according to chairman Kevin Loosemore.

"Whilst the short term decline in licence [revenue] is disappointing it is not unusual given the level of change being undertaken," he added.

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Having received the necessary regulatory sign-offs, Micro Focus expects the takeover of HPE Software to complete in September – a full year after the deal was first announced.

Micro Focus said it would convene a general meeting to request approval of the transaction shortly.

Shareholders will also be asked to rubber-stamp a £386mln return of cash – which equates to £1.61 a share.

At 8.30am the shares were down 311p at £23.28, valuing the business at £5.5bn.

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