Indianapolis-based Brightpoint Inc. said Friday that it has entered into a settlement agreement with NC Telecom Holding
A/S to repurchase about 3 million Brightpoint shares from the Denmark holding company.
NC Telecom owned Denmark-based Dangaard Telecom before Brightpoint, the world’s biggest wireless phone distributor, bought the cell phone distributor in August 2007. Brightpoint paid $385 million in stock and assumed $350 million in Dangaard debt.
But the deal since has lost much of its luster, as Dangaard has not performed up to expectations.
Under the agreement with NC Telecom announced today, Brightpoint settled its indemnification claims against NC Holding. Also, NC Holding no longer will have the right to appoint a representative to serve on Brightpoint’s board; its current delegate has agreed to resign immediately.
So far, Brightpoint has repurchased 150,794 shares of its shares from NC Telecom at an average price of $6.31. Altogether, the company will have repurchased 3.1 million shares at an average price of $5.22, or about $16.5 million.
Upon completion of the stock repurchase from NC Holding, Brightpoint will have 78.8 million shares of common stock outstanding.
The share repurchase program expires on July 31, 2011.
Brightpoint stock fell 44 cents per share, to $7.80, in early trading Friday morning.