Empyrean Energy Plc (LON:EME) announced, in an afterhours statement on Monday, that it will pay out £17.5mln of cash to its shareholders.
The company revealed it will out 7.9p per share to shareholders.
It will be transacted through the issue of newly created B shares, worth 7.9p each, which will be redeemed from shareholders by the company for cash.
Shareholders must first approve the proposal, at a general meeting on October 19.
Investors holding Empyrean’s ordinary shares at 5pm on October 19 will be eligible for the pay-out, and it is expected that the process will be complete by mid-November.
Empyrean’s directors, which together own 11% of the company’s shares, have recommended the proposed cash return and they intend to vote in favour of the proposals.
“The directors believe that the passing of the resolutions is most likely to promote the success of the company for the benefit of its members as a whole,” Empyrean said.
Empyrean’s shareholder windfall comes after the group sold its main asset, a minority stake in the Marathon operated Sugarloaf project. The deal was worth US$71.5mln and it allowed the AIM quoted group to repay its debts and gave it a cash surplus.