Inabox has offered some clarity on what will happen when the company's assets are sold to MNF Group later this month.
The company told shareholders that it plans to distribute all surplus cash to shareholders if the acquisition is successful, which is estimated to be approximately $17 million plus potential receivables of up to $4 million.
This would be paid out via a fully franked dividend of approximately 29 cents per share in January next year, followed by a further 41 cents per share through a return of capital in March.
Inabox said this would likely produce a better and more certain financial outcome for its shareholders as opposed to retaining the cash to seek a backdoor listing opportunity when the company is wound up after the acquisition. If no such opportunity comes about, Inabox will make a final capital distribution of its remaining surplus cash after the end of 2019 financial year.
The plan still requires approval from Inabox's shareholders and the ASX once the acquisition is completed.
Inabox revealed the proposed acquisition last month, which will see MNG pay up to $33.5 million for the remaining indirect wholesale telecommunications business, enablement services and subsidiary companies Telcoinabox, iVox, Neural Networks, Mobile Services Solutions and Symmetry Networks.
If Inabox reaches its earn out bonuses of up to $3 million, shareholders are likely to receive in excess of 80 cents for each of their shares – a 70 percent premium on its three-month volume weighted average price of 47 cents prior to the announcement.
All of Inabox's remaining employees will be picked up by MNF except for chief executive Damian Kay and CFO Deborah Zimmer.
Inabox struggled with its direct business starting in November last year following a poor financial performance from one of its acquisitions, Hostworks. Three months ago, Inabox sold off its direct business to 5G Networks for $5.7 million, which included managed IT, hosting and communications.