5th Mar 2015 08:13
LONDON (Alliance News) - Quindell PLC on Thursday said it has sold off its minority stake in Nationwide Accident Repair Services PLC, has reached a litigation settlement on Navseeker Inc and will issue shares to cover the consolidation of its property services arm.
The insurance outsourcing company said it struck a deal on Wednesday to sell its 25% minority stake in Nationwide Accident Repair Services for 65 pence per share, raising approximately GBP7.1 million. That will go towards general working capital, Quindell said.
Nationwide shares were trading down 4.2% to 80.00 pence at the open on Thursday.
The company also said it has reached a settlement in the US regarding its stakeholding in Navseeker Inc, a subsidiary of Himex Ltd, a wholly-owned Quindell subsidiary.
Under the terms of the settlement, Quindell will acquire the shares in Navseeker held by the plaintiffs in the case for a consideration of 684,770 shares. It did not provide any details on the pricing of the shares. It said it also will make a USD1 million cash payment to the plaintiffs.
Quindell also said it is taking steps to consolidate its property services assets in order to prepare them for future disposal.
It will therefore issue 3.7 million shares to allow Brand Extension (UK) Ltd, a Quindell subsidiary, to buy the 50% of BE Insulated (UK) Ltd it does not already own, as well as the entire issued share capital of Carbon Reduction Company (UK) Ltd, BE Insulated's insulation business.
The 3.7 million shares will be issued to Ben Williams, a director of BEI.
Quindell shares were down 3.3% to 87.75 pence at the open on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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