Micro Focus to buy back up to £60m of its shares

Software giant Micro Focus announced yesterday it will undertake a share buy-back programme.

Its shares closed up 2.7 per cent higher at 317p after the news it will claw back up to £60m of its stock.

According to a statement the company can buy shares at a maximum five per cent above the average price for five days ahead of the purchase.

Numis and UBS are advising on the buyback and will determine its timing.

It will be funded out of the company’s existing cash balances and available debt facilities.

Last month Micro Focus’ shares plunged 26 per cent after saying it would lose some large mainframe deals in its third-quarter and would not be able to make up the shortfall in the remaining three months of its financial year.

Earlier this month its stock spiked after speculation it was a takeover target for Germany’s SAP.