The Praemium Ltd (ASX: PPS) share price is surging 18% into the green on Friday. It now trades at 55 cents apiece at the time of writing.
Despite no market-sensitive news today. Praemium did release a critical update regarding the divestment of its international business after the closing bell yesterday.
What did Praemium announce?
The ASX tech company, which provides financial planning tools to the wealth management industry, advised it had successfully completed the divestment of its operations in the United Kingdom, Jersey, Hong Kong and Dubai.
Operations were sold off to Morningstar, Inc, where Praemium received net proceeds of 35 million British pounds, "consistent with the originally agreed price".
Praemium said the divestment would allow it to focus its resources on the domestic market, honing in on its market of sophisticated wealth advisers and their clients.
Speaking on the update, Praemium CEO Anthony Wamsteker said the company was "delighted to achieve the milestone".
"[T]his successful divestment will allow Praemium to focus on the enormous opportunity that the Australian wealth market offers.
Morningstar has been a tremendous partner as we have worked collaboratively through the sale conditions, and is an ideal owner of the International Business. We wish them well.
Buyback and special dividend to come
Praemium intends to return the surplus of its net proceeds gained from the sale back to its shareholders by way of an on-market buyback and special dividend.
After considering all future investment and liquidity needs, the board has approved the return of approximately $50 million to shareholders.
Just over $23 million has been authorised for the buyback, to buy up to 10% of Praemium's issued capital after its FY22 results.
Meanwhile, it also declared a special dividend of 5 cents per share, resulting in a payout of $25.7 million.
Despite today's major gains, the Praemium share price has sunk more than 49% into the red over the past 12 months.
