11th Nov 2014 09:01
LONDON (Alliance News) - Quindell PLC Tuesday said Chairman Robert Terry bought a further 50,000 of its shares on Monday, meaning he bought 300,000 shares in the wake of the company's share price fall after it tried to clarify a previous share transaction by its directors.
The company said Terry bought the 50,000 shares at GBP0.9771 a share, and now has an interest in 38.1 million voting shares and a total interest in nearly 47 million shares.
The price for the new share purchase was below the GBP1.0225 pence a share Terry paid for 250,000 shares earlier in the day Monday.
Both those share purchases came after Quindell's shares slid in the wake of the company giving more detail about a recent deal done by three of its directors, including Terry, who took out loans to buy shares and put some of their share holdings up as security for the deal.
On November 5, Terry, Finance Director Laurence Moorse and Non-Executive Director Steve Scott bought nearly 1.6 million shares in total, using funds from a loan provided by Equities First Holdings LLC, a US company which describes itself as "a pioneer in stock loans". A company controlled by Scott, Bickleigh Ridge Ltd, also bought 175,000 shares using the same mechanism, it was announced two days later.
Quindell shares came under pressure Monday when it clarified and detailed that transaction, revealing that Equities First had paid a sum equal to 67% of the three-day average market value per share less a financing arrangement fee of 3% for the transferred shares.
It was also revealed that the directors may be required to make margin calls if the Quindell share price fluctuates wildly. If the share price falls to 80% or less of the value at the time they were transferred to Equities First, then they'll have to transfer more of their holdings to the US company or to provide cash to satisfy margin calls, Quindell said.
In a statement Monday, Terry had said the directors did the deal because they felt Quindell's shares were undervalued and the board was confident the company would meet its full-year market expectations and its longer-term prospects.
He was joined by Chief Executive Robert Fielding in buying shares after Quindell shares slid on Monday. Fielding, who wasn't one of the directors taking part in the loan deal, also reiterated that the purchase signalled his confidence in the company's prospects.
Quindell shares were down another 1.0% at 94.04 pence early Tuesday, having fallen 16% on Monday.
By Steve McGrath; [email protected]; @stevemcgrath1
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