5th Nov 2014 14:18
LONDON (Alliance News) - Quindell PLC Chairman Robert Terry Wednesday said he is confident of the outsourcing provider meeting full-year market expectations and of its prospects in the longer term, as he and two other directors entered loan facilities under which their holdings in the company have been transferred as security to buy more than 1.5 million of the company's shares on the market.
According to Quindell, Terry bought 1.0 million shares at an average price of 123.47 pence each, giving him a 10.69% stake in the company, while Finance Director Laurence Moorse bought 50,000 shares at a 123.00p average price. Non-Executive Director Steve Scott acquired 525,000 shares at an average price of 123.84p. Moorse now has a 0.29% stake in the company while Scott has a 1.29% stake.
Together, the directors hold about 52 million Quindell shares out of its 436.4 million total.
In a statement, Quindell said that the directors are "each required to redeem the transferred shares at maturity when the loan is repaid at the end of the two year term, and it is their full intention to do so."
The loan facility was arranged, and the funding provided by, Equities First Holdings LLC, a US company which describes itself as "a pioneer in stock loans".
"As demonstrated by the purchases made by some of the board today and recently by other members of the board and executive team, we believe the current market valuation of the company is materially below its true value. The board remains confident of meeting full-year market expectations and of the company's longer-term prospects," Terry said in a statement.
"We are pleased that we have been able to secure funding to allow us to take advantage of this buying opportunity and to make these initial significant purchases of stock at these levels," Terry added.
Quindell shares have been under pressure since April, when short-seller Gotham City Research LLC published a critical 74-page report that hit the software, consultancy and technology outsourcing provider's share price.
Quindell shares were up 5.4% at 132.00 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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