Redcentric Plans Capital Reduction to Enhance Shareholder Returns
Redcentric plc intends to cancel its share premium account to create additional distributable reserves, requiring shareholder approval. The capital reduction follows the planned sale of its data center business, expected to conclude by April 30, 2026, and aims to facilitate further capital returns post-transaction.
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Redcentric plc (AIM:RCN) has proposed a capital reduction to increase distributable reserves, necessitating shareholder approval at a general meeting scheduled for May 13, 2026. This move comes after the announcement of a conditional sale of its data center business to Stellanor Datacenters Group Limited, with completion anticipated by April 30, 2026.
Post-sale, Redcentric aims to concentrate on managed services, reduce balance sheet leverage, and initiate a share buyback program. The company's distributable reserves are estimated at £75 million without the capital reduction. Shareholder approval requires a special resolution and subsequent High Court confirmation, with the initial court hearing expected in early June 2026.
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