CSF shares boosted by long-awaited disposal

IT service management company CSF Group saw its share price jump over 40% on Thursday after it completed the disposal of its subsidiary CSF CX.

The sale of the subsidiary, which runs the CX2 data centre and provides data centre tenancy and network infrastructure solutions to Bridge Data Centres Malaysia Holdings was initially announced in September, but has suffered delays from regulatory processes.

In September, the AIM-listed company said the consideration in respect of the disposal would be "nominal" but that the arrangement would improve its financial position due to a reduction in liabilities and lease payments.

As such, the deal will see the return to CSF Group of deposits lodged for banking facilities and rental deposits, estimated to amount to approximately £1m at current exchange rates, in connection with the data centres managed by CSF CX is anticipated to occur in June.

CSF Group said it will update shareholders regarding the return of cash when appropriate.

As of 1206 BST, the shares were up 33.33% at 2.00p.