Magirus shareholders repurchase Agilysys stake

Private shareholders in storage and security distributor Magirus, including the Kuwaiti Alghanim family, have bought back the 20.2% in the company owned by US-based solutions provider Agilysys.

The three private shareholder groups, consisting of the Alghanim, Magirus and von Kuenheim families, paid $2.2 million for the stake.

Magirus says the acquisition of the shareholding enhances its ability to react with speed and flexibility to the market challenges it faces. It also believes the move reduces its exposure to the uncertainties impacting stock markets given Agilysys’ status as a NASDAQ-quoted company.

“The greater decision-making capacity of this shareholder structure is evident in, among other things, the willingness of our private shareholder groups to make a financial investment,” said Fabian von Kuenheim, chairman of the board at Magirus.

“With this transaction we additionally realise a contribution to equity capital by our shareholders and thus reduce, as in the case of the withdrawal of our current stock exchange-listed shareholder Agilysys, the influences on our company of the turbulence which has hit the financial markets,” he added.

The Alghanim family purchased almost half of Agilysys’ stake in Magirus, boosting its overall share of the Germany-based distributor to 30%. The Magirus and von Kuenheim families, meanwhile, now own 27.5% and 42.5% of shares respectively following the transaction.Although Agilysys sold its 20% stake in Magirus for a fraction of the US$10.6m it paid eight years ago, the company claims it has made a profit of $3.7 million — or 35% of its investment — during that time. That includes the income it earned from marketing fees and a $7.3 million dividend it was paid in July this year.