Catalyst Media (CMX) , the sports marketing business, announced yesterday afternoon it expects to pay out a dividend to shareholders following an asset sale.
Sports Information Services, (SIS), of which catalyst has a 20.54% interest, successfully disposed its connectivity services business to NEP group.
The net proceeds of the disposal will leave SIS with surplus cash of approximately £95 million after deducting working capital requirements.
SIS advised Catalyst Media that it expects to pay £40m dividend to shareholders by early November.
Catalyst is expected to receive £8.2m from the dividend, increasing its cash balance to 12.6m.
Catalyst stated: “the Board of CMG intends to distribute the majority of its resulting funds to its shareholders via a dividend of approximately £12.2 million, equating to approximately 58 pence per share.”
The share price shot to 133.5p a share, up from 87.5p following the announcement.
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