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Highlights:
- New Repurchase Programme: Nexxen International seeks authorisation for a $50M share repurchase programme, replacing the current one expiring in November.
- Regulatory Compliance: The firm must complete a creditor objection period and gain lender consent before proceeding with the buybacks.
- Dormant Shares: Repurchased shares will be classified as dormant and reclassified as treasury shares under Israeli law.
Nexxen International, a global advertising technology platform, has announced its intention to seek authorisation for a new $50 million share repurchase programme. The AIM-listed company plans to replace its current repurchase programme, which expires on 1 November, with a new initiative designed to give it flexibility in managing its share capital. As an Israeli firm, Nexxen must adhere to recently adopted regulations, adding procedural requirements before the programme can take effect.
New Regulatory Framework and Authorisation Process
Under Israeli law, Nexxen must now comply with a creditor objection period before implementing the repurchase programme. This new requirement replaces the prior necessity of securing court approval, effectively reducing the overall authorisation period. The creditor objection period allows stakeholders a specific time frame to raise any issues with the programme, adding a layer of transparency and protection for creditors.
Nexxen will also need to obtain consent from its bank lenders before commencing the share repurchase. The company indicated that once the creditor objection period concludes and lender consent is secured, it will have the option—but not the obligation—to proceed with share buybacks. The company stressed that it will update the market with further details once the process is completed or if any delays arise due to objections or lender approval issues.
Dormant Shares and Future Plans
Under Israeli law, any shares repurchased through the programme will be classified as "dormant," meaning they will carry no voting rights or dividend entitlements. These shares will effectively be reclassified as treasury shares, giving Nexxen greater control over its share capital without diluting the holdings of existing shareholders.
The company emphasised that this new programme is intended to maintain financial flexibility and could be a valuable tool in enhancing shareholder value. However, the repurchase of shares will be optional, allowing Nexxen to execute buybacks at its discretion depending on market conditions and financial considerations.
At the time of the announcement, Nexxen International’s shares had risen 3.85%, trading at 312.58p.
