Northern Bear Proposes to Return £3.1 Million to Shareholders

Northern Bear, the London-listed building-services provider, has announced its plan to return up to £3.1 million ($3.8 million) to its shareholders through a tender offer. The company's current performance is said to be in line with expectations.

Tender Offer Details

In its proposal, Northern Bear intends to acquire up to 5 million shares at a fixed price of 62 pence per share. This represents a premium of nearly 40% compared to the closing price of 44.5 pence on Friday prior to the announcement.

To fund the tender offer, the company will utilize its cash resources and also increase its existing debt facilities by £1.0 million, bringing the total debt facilities to £4.5 million.

Creating an Exit Strategy for Shareholders

The tender offer serves as an exit strategy for shareholders who wish to sell their investments while eliminating the prolonged uncertainty caused by an overhang of shares. This move aims to provide stability and clarity for investors.

Positive Business Outlook

Despite the economic challenges and their impact on the construction industry, Northern Bear affirms that its business remains in line with the board's expectations. The company maintains high site activity levels.