Shares in OPG Power Ventures PLC (AIM:OPG) rose 6% to 5.76p after the India-based power producer announced plans to return up to £11.41 million to shareholders and to cancel its AIM listing.
The company said it will conduct a conditional share buyback of up to 182 million shares, representing around 45% of its current share capital, at a fixed price of 6.27p per share, a 15% premium to the previous day’s close.
The proposal, which requires shareholder approval at the annual meeting on 3 December, would return cash directly to investors who choose to participate.
OPG also intends to delist from AIM, saying the move is in shareholders’ best interests as the costs and regulatory burdens of maintaining a London listing outweigh the benefits. If approved, the delisting is expected to take effect on 24 December.
The company’s majority owners, known as the Family Concert Party, control just over 51% of OPG’s shares and have pledged to vote in favour of the resolutions but will not participate in the buyback.