Runcorn-based Nanoco Group has outlined its plans for the $150m it will receive following litigation with South Korean tech giant Samsung.
The sum was agreed in “no fault” settlement after the Cheshire firm took legal action over the claim Samsung used its technology without permission in its QLED televisions.
Nanoco has said it will initally undertake a capital reduction in order to allow returns to its shareholders. Nanoco said it aims to start a return of between £33m and £40 pounds, or approximately 10 to 12p per share to shareholders.
This will be done using the second tranche of proceeds of its Samsung litigation, which amounts to $75 million and is expected to be received in February 2024.
The company is currently restricted from returning capital to its shareholders as it doesn’t have distributable reserves.
Following the return to shareholders, Nanoco said it plans to retain around £20m of cash to invest in commercial activities including research and development, payment of debt obligations, IP licencing, and providing working capital through to the self-financing position that is expected to be achieved during 2025, after litigation costs have been paid.
Nanoco’s non-executive chairman Christopher Richards said: “The proposals in relation to a capital reduction and the proposed return to shareholders are consistent with our stated intention to balance the investment needs of Nanoco’s growing organic business whilst delivering a material return of capital to shareholders following the Samsung litigation.
“The board considers the resolutions to cancel the company’s share premium account and capital redemption reserve to be in the best interests of the company and its shareholders as a whole and the board unanimously recommend that shareholders vote in favour of the resolutions to be proposed at the general meeting.”
