IBEX Limited buys back 3.56mn shares from TRGI in $70mn deal

IBEX Limited, a US-based technology company, has repurchased approximately 3.56 million shares for $70 million from The Resource Group International (TRGI).

The development was shared by TRG Pakistan Limited (TRG), an associate company of TRGI, in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“TRG Pakistan Limited has been informed that its associate The Resource Group International Limited (TRGI) has entered into a definitive agreement with its portfolio company, IBEX Limited (IBEX) pursuant to which IBEX has repurchased approximately 3.56 million IBEX shares from TRGI.

“The total transaction consideration is $70 million consisting of $45 million in cash and $25 million in seller financing,” read the notice.

As per the company, the purchase price was $19.65 per share, which represents the last closing price before the deal was announced, as well as the five-day volume-weighted average trading price for IBEX common shares on the Nasdaq Global Market as of the signing of this transaction.

“Following this repurchase, TRGI will retain ownership of 1.8 million common shares of IBEX, with TRGI’s shareholder agreement with IBEX dated November 2017 remaining in effect,” read the notice. However, TRGI is no longer a controlling shareholder.

“Additionally, IBEX will have the right to repurchase the remaining shares owned by TRGI within 4 years, if certain conditions are met,” it added.

TRG, in its statement, informed that Houlihan Lokey acted as financial advisor to TRGI for this transaction.

As per TRG’s latest financial results, during the year ended 30th June 2024, the company incurred a loss after tax of Rs30.8 billion or Rs56 per share.