Leading e-learning software company SkillSoft has taken the next legal step needed to embark on a programme to buy back its own shares.

The company is to reduce its share capital by cancelling €684.75m from its share premium account after being granted an order from the High Court confirming the reduction.

The share capital reduction has wiped out SkillSoft's accumulated deficit and in the process created re­sources which the company can now use to buy back its own shares.

"The company has taken the move as it feels that at current market prices the shares are undervalued at these lower levels," a spokesman told the Sunday Tribune. "It's basically a show of the tremendous faith we have in the company." The shares are currently trading at $9.02 and €5.76.

Despite having substantial interests in the US the company is an Irish entity, and under Irish law can only repurchase its shares from distributable profits. Earlier this week the company confirmed it had received an order under Section 74 of the Companies Act 1963 which will facilitate the repurchase earlier this week.

Up to the end of April, SkillSoft repurchased more than 1.21m shares, leaving more than 8.78m available for repurchase under the current shareholder approved repurchase programme.

SkillSoft is a leading provider of e-learning and performance support solutions globally. Its headquarters is based in Clonskeagh, in Dublin.