Micro Focus starts share buyback programme

Micro Focus International said on Wednesday that it has begun a share buy-back programme with an initial tranche of up to $200m.

The programme will be effected in accordance with the terms of the authority granted by shareholders at the 2017 annual general meeting, with ordinary shares purchased held in treasury.

Shareholders voted on 21 August to approve the proposed transaction, whereby the company has agreed to sell its SUSE business segment to Marcel Bidco GmbH, a newly incorporated, wholly-owned subsidiary of EQTVIII SCSp, for around $2.54bn in cash.

Micro Focus said the vote is a "significant" step towards the finalisation of the transaction which is expected to complete in the first quarter of calendar year 2019. Following the vote, the transaction remains conditional on the implementation of the separation of the SUSE business segment.