TTP Group buys back its shares from 3i plc; increases employee stake to 89%
TTP Group plc has bought the 12.6% interest in it owned by venture capitalist 3i plc for an undisclosed sum.
The shares will be transferred to its Employee Share Ownership Plan.
TTP CEO Peter Taylor said the purchase helped "fulfil our commitment to keeping the company controlled by its employees.
"This has been a key reason why TTP has been so successful since its inception 21 years ago when it was predominantly funded with founder employees' own capital."
TTP was founded at the end of 1987 and has grown entirely financed from retained profits, after some initial external equity investments in 1988.
The majority of shares are held by present and former employees. The current deal increases the shareholding of its ESOP trust to 17%. It plans to use the income the trust receives from its shareholding to enhance the broad share ownership of current and future employees, by providing a more active and liquid share market. Since the company first achieved profitability, it has used 15% of its profits to pay bonuses and provide free shares to its staff.
"We have always attempted to ensure that all of our employees have a real incentive to contribute to the long term sustainable success of the company", Taylor said.
He said: "We firmly believe that the future for our company includes facilitating the transfer of broad ownership of the company from one generation of employees to the next, so that they too can share in the success of the company.
"This purchase increases the percentage of the company owned by employees past and present, together with the ESOP, to about 89% and will strengthen the ESOP's ability to act as a facilitator in our internal share market.
