eServGlobal trims shareholder return from USP sale
- 10 June, 2011 18:00
Mobile money and value-added services company eServGlobal (ASX:ESV) has trimmed the per-share sum it plans to return to investors following last year's sale of its USP business.
The company on Friday said that after consultation with the ATO, the amount that will be redistributed to shareholders has been reduced to $0.29 per share from $0.33 per share.
eServGlobal said the strong Australian dollar, which has reduced the distribution for the 46% of investors on its registry that reside in the UK, was a factor behind the decision.
The company also cited new opportunities for the businesses the company is now focusing on, its HomeSend international money transfer and PayMobile mobile recharage and payment services.
The payment to shareholders will be made partly as a return of capital and partly as a dividend.
eServGlobal closed the $107 million sale of its USP pre-paid billing platform to Oracle in October. Before the sale, USP had contributed 42% of the company's total revenue.
But the company decided to sell out of the business because it was increasingly having to rely on partnerships to fulfil demand for converged billing support systems (BSS).
Shareholders in November approved the return of capital, which eServGlobal at the time said was worth $65 million.
ESV shares grew 0.72% in Friday's trading to $0.695.