14th Jun 2022 13:50
Randall & Quilter Investment Holdings Ltd - Bermuda-based specialty non-life insurance company with Program Management and Legacy Insurance businesses - Upsizes fundraise that was announced on Monday, with the firm now hoping to raise about USD125 million.
Plans to use the additional net proceeds from the fundraise to further de-lever the business.
The fundraise follows R&Q shareholders late last month voting to reject a GBP482 million takeover offer from 23% shareholder Brickell PC Insurance Holdings LLC. Brickell also had committed to provide USD100 million in new equity funding to R&Q to de-leverage its balance sheet, so the equity raise announced on Monday is intended to replace this.
On Tuesday, R&Q also notes it has agreed to a USD1.3 million settlement from Brickell after the takeover collapsed.
R&Q said it had received a letter from Brickell alleging that it was in breach of certain obligations under the terms of the deal. Brickell said it was exercising its right to terminate the offer, but R&Q disagreed with Brickell's move.
"In light of these developments, R&Q has decided to extend the period of the bookbuild in connection with the fundraise to allow investors to consider this new information. The company will provide further updates on the timetable of the fundraise following completion of the Bookbuild," R&Q adds.
Current stock price: 98.86 pence, up 5.2% on Tuesday
12-month change: down 42%
By Paul McGowan; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
RQIH.L