Vecima Networks' board authorizes special cash distribution for approval
Vecima Networks (TSE:VCM), a manufacturer for broadband cable and wireless network infrastructure, says its board has authorized a special distribution to shareholders of $1.00 per share, following a strategic review of alternatives.
The distribution, in the form of a return of capital, is subject to shareholders approving a reduction in the stated capital of the common shares. The company said that already, stakeholders representing over 78% of shares, have said they would vote in favour of the special resolution.
Vecima began its strategic review process last August, evaluating a range of alternatives, it said, and determined that it would be in the best interest of shareholders to make a special cash distribution and to continue to focus on its core business of designing and manufacturing broadband access products.
"We are pleased to be in a position to announce this proposed special cash distribution," said chairman and CEO, Dr. Surinder Kumar.
"Following the proposed distribution, we will have a strong balance sheet and will continue to explore opportunities to maximize shareholder value, including the possibility of future dispositions of non-core assets and cash dividends or distributions."
The company is planning to hold the shareholder meeting to consider the special resolution on March 11. If it is approved, the special cash distribution will be shelled out about March 27.
Shares in Vecima rose more than 1% in early deals in Toronto, but were lately down 0.4% to $5.00 as of 11:00am ET.