IBEX Limited announced on November 19, 2024, that it repurchased 3,562,341 common shares from The Resource Group International, Limited (TRGI) for $70 million. This transaction represents approximately 20% of the company’s diluted shares outstanding.
The purchase price was $19.65 per share, funded by $45 million in cash and $25 million in seller financing. Following this repurchase, IBEX will have a proforma net debt position of approximately $9 million based on its September 30, 2024 balance sheet.
A significant outcome of this transaction is that IBEX will no longer be classified as a "controlled company" under Nasdaq Stock Market Rules, with a majority of its eight-person board consisting of independent directors. This move is expected to decrease shareholder concentration and potentially broaden the company's shareholder base, enhancing corporate independence. IBEX also stated it would pause its existing share repurchase program following this transaction.
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