Quindell PLC Capital return update (1496E)

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RNS Number : 1496E

Quindell PLC

02 November 2015

2 November 2015

Quindell Plc

("Quindell" or the "Company" or the "Group")

Capital return update

Quindell Plc (AIM:QPP.L) announces that, pursuant to previously stated commitments, the Board of Directors of Quindell plc (the "Board") has decided to pursue a two stage distribution of 100 pence per share, with an initial, Court approved, capital repayment to shareholders of 90 pence per share and expects to seek Court approval for this to be made to shareholders in December 2015 at a total cost of approximately GBP415 million.

In consultation with its legal and financial advisers, and following detailed internal and external consideration of the Company's actual and prospective contingent creditors, the Board considers that an initial, Court approved, capital repayment to shareholders of 90 pence per share is both prudent and appropriate. The Board's intention is to make the second stage payment to shareholders of a further 10 pence per share in cash following the anticipated release at the end of 2016 of the GBP50m (which would represent approximately 11 pence per share) warranty escrow put in place as part of the disposal of the Professional Services Division ("PSD"). The Company will also seek to make this payment to shareholders in a tax and cost efficient manner.

In addition, and as previously announced, the Company will make further distributions as contingent consideration from the disposal of the PSD is realised. As previously detailed, the Company has performed a preliminary valuation exercise based on the information available at the point of disposal and has determined that a prudent estimate of the current value of the contingent consideration is approximately GBP39.6m.

The Board confirms that there have been no material changes to the value of the Company's assets, nor its actual or prospective, contingent creditors (including to regulatory bodies or prospective litigation) since previously detailed to the market. The trading assumptions of the Group's businesses remain in line with previously stated expectations.

The Company expects to issue a circular relating to the capital repayment to shareholders on 11 November 2015, with a Court hearing to follow on 16 December 2015. On such timetable, the Company would convene the required General Meeting on 26 November 2015.

For further information:

 
 Quindell Plc                                            Tel: [phone] 
 Richard Rose, Non-executive Chairman 
  Indro Mukerjee, Group Chief Executive 
  Officer 
 Stephen Joseph, Head of Investor Relations 
 
 Tulchan Communications                            Tel: [phone] 
 Susanna Voyle 
  Victoria Huxster 
 
   Peel Hunt LLP, Nominated Adviser and              Tel: [phone] 
   broker 
 Dan Webster 
 
 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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November 02, 2015 02:00 ET (07:00 GMT)