Shares of Runcorn nano-material firm Nanoco Group plc rose almost 10% after it announced it will post a circular setting out the details of a proposed return to shareholders of up to £33 million “of the Samsung litigation proceeds.”

Nanoco said: “Following the receipt of the final litigation proceeds, the board and its advisers consulted with shareholders representing approximately 37.5 per cent. of the company’s issued share capital on the different options for a proposed return of capital.  

“The board has determined that, in order to provide flexibility and choice to shareholders, the most appropriate means of returning value is to conduct a Tender Offer to return up to £30.0 million to shareholders …

“In addition to the Tender Offer, the board also intends to return a further sum of up to £3.0 million by way of an on-market share buyback of ordinary shares to provide a continuing value-accretive return of capital to Shareholders.

“The Tender Offer is being made at a fixed price of 24 pence per ordinary share, which represents a premium of 25.1 per cent. to the closing mid-market price per ordinary share on 8 March 2024 and a premium of 19.6 per cent. to the 60-day volume weighted average price per ordinary share on 8 March 2024.

“The Tender Offer is for up to 38.5 per cent. of the company’s issued share capital (excluding ordinary shares held in treasury) with the share buyback programme, commencing following completion of the Tender Offer, having the potential to acquire a further 3.9 per cent. of the company’s issued share capital (if assumed at the Tender Price).”

Nanoco chairman Christopher Richards said: “Over the last five years, Nanoco has been transformed from an R&D first mover facing going concern challenges to a commercial manufacturer of nanomaterials, with a growing range of leading nanomaterials and a validated IP portfolio supported by the strongest commercial and financial position in its history.

“Today Nanoco is announcing an exceptional and significant return of capital to shareholders, while retaining and investing funds to support delivery of further value from commercial prospects and enhance our future growth and margin profile.

“With growing opportunities and a fully funded commercial business, we are confident in enhancing shareholder value over the medium and long term.”