16th Dec 2015 08:00
LONDON (Alliance News) - Shares in Watchstone Group PLC, formerly known as Quindell PLC, were suspended from trading on AIM Wednesday morning pending an announcement.
The company said the suspension was requested ahead of the court decision on the company's planned return of capital to shareholders and capital reduction. The group is planning to return 90.00 pence per share, or GBP414.0 million in total, from the sale of its professional services arm to Australian law firm Slater & Gordon.
Should the plans be approved by the court, the company said the suspension will remain in place until Monday next week. If the proposals are rejected, the company will request trading restarts this Thursday.
The move comes after the company on Monday said it had received a letter from an unnamed law firm representing hundreds of claimants stating it plans to commence action against the company under the Financial Services and Markets Act 2000.
Watchstone said it will "vigorously defend all claims" made against the company, but said the potential claims could amount up to GBP9.4 million. The law firm which has sent the letter is representing a total of 342 claimants, it said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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