Bigblu (AIM:BBB) shares surged 18% after announcing a £6.1 million cash return to shareholders. The move follows the sale of its Australian business, SkyMesh, which brought in £14.9 million.
The company will buy back up to 15.25 million shares at 40p each—a 43% premium to the last closing price and 25% above the three-month average. If fully taken up, the buyback will reduce Bigblu’s share count by 26%.
The deal comes after the company settled its debts with Santander, leaving surplus cash to return to investors. Bigblu’s board says the buyback is in shareholders’ best interests, with details to be set out in a forthcoming circular.
Corporate broker Cavendish will handle the buyback, purchasing shares before passing them to Bigblu for cancellation.
Investors are free to participate or hold onto their shares.
The stock was up 5p at 33p.