Business
Completion of Sale of Redcentric Data Centres Ltd
Redcentric plc has completed the sale of its data centre business, Redcentric Data Centres Limited, to Stellanor Datacenters Group Limited for an estimated £122.85 million, with an initial payment of £115.4 million received. The company intends to return over £90 million to shareholders through an equity tender offer at 160 pence per share, subject to approval, and may also conduct share buybacks. Additionally, Redcentric will reduce its debt by repaying a significant portion of its revolving credit facility, lowering it from £40 million to approximately £19 million, while retaining a £30 million facility. This strategic move allows Redcentric to focus on its core Managed Services Provider business and drive organic growth. Disclaimer*
About this update from Redcentric Plc
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the 'UK MAR') which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain. 1 May 2026 Redcentric plc ('Redcentric', the 'Company' or the 'Group') Completion of Sale of Redcentric Data Centres Limited 'Transaction unlocks significant shareholder value' Redcentric plc (AIM: RCN), a leading UK IT managed services provider, is pleased to announce the successful completion of the sale of its entire data centre business, Redcentric Data Centres Limited, to Stellanor Datacenters Group Limited for an estimated £122.85 million1 (the 'Transaction'). The Transaction, originally announced on 23 October 2025, has completed following the satisfaction of all conditions precedent. This marks a pivotal milestone for the Group, enabling a substantial return of capital to shareholders, significant debt reduction, and a sharpened strategic focus on growth opportunities within the remaining Managed Services Provider ('MSP') business. An initial payment of £115.4 million was received by the Company on 30 April 2026 in accordance with the terms of the agreement. The remaining consideration is expected to be received by 31 July 2026, once the post completion adjustments have been concluded. Use of Proceeds The Board has prioritised the use of proceeds to deliver a substantial near-term return of capital to shareholders while strengthening the Group's balance sheet and supporting the core established successful MSP business. In summary: · Material Return of Capital Return to Shareholders: The Board intends to propose an equity tender offer at a price of 160 pence per share. The Tender Offer is expected to return in excess of £90 million2 to shareholders and will be subject to shareholder approval. A Circular containing full details of the Tender Offer, confirming the proposed price per share, amount payable and timetable, is expected to be publis...