R&q Insurance Share Discussion Threads

[red ninja] 21/5/2022 17:09

It is not clear to me if the Slater comment is from before the vote, or a restated comment after the vote.

[simon gordon] 21/5/2022 15:49

Can anyone post the piece in today's Times as they seem to be in direct touch with Mark Slater?

[red ninja] 21/5/2022 13:22

Geraldus,

I believe the intention is for Brickells to merge one of it subsidiary's into R & Q and for it to continue as a private Brickell subsidiary under the very much valued current management.

I would not be surprised if R & Q does live up to it's potential even if it Brickell and 777 partners who will reap the rewards.

[simon gordon] 21/5/2022 09:15

One of the founders is the CEO.

One could say that the founders and their Brandywine deal is why they've had to do an emergency capital raise of $100m and sell the company.

[topvest] 21/5/2022 08:32

Sell when the founders depart is the conclusion here.

[geraldus] 21/5/2022 07:35

Possibly a sad ending here with my capital tied up until the eventual pay day. - Randall and Quilter - deceased.

[topvest] 20/5/2022 20:48

All a bit of a mess.

[simon gordon] 20/5/2022 17:39

Say they've got 72%.

Slater has 9.9%.

Brickell's non voting shares are 13.3%.

Total = 95.2%.

So, stragglers of 4.8% are free and look to have voted no.

-

RNS - 1/4/22

"Brickell and its affiliates currently have a 23.2% shareholding in R&Q but 9.9% voting rights in R&Q. In March 2019, Brickell made its initial investment in R&Q by acquiring a 9.0% shareholding. In April 2020, Brickell purchased an additional $80 million of exchangeable preferred stock of a R&Q affiliate. In January 2021, Brickell exchanged the preferred stock to equity in R&Q but remained at 9.9% voting interest in R&Q following the receipt of relevant regulatory approvals. As a result of the terms of the conversion documents and R&Q's Bye-laws, Brickell and its affiliates currently only have the ability to exercise voting rights equal to 9.9% of the current total voting rights in R&Q without obtaining relevant regulatory approvals."

[simon gordon] 20/5/2022 17:27

Brickell own 23.2% of RQIH but only have 9.9% voting rights.

[afilip] 20/5/2022 17:23

You're right, then it may not be just Slater who voted against.

[red ninja] 20/5/2022 17:01

25% of 70% is 17.5% isn't it ?

I think they need 75% of shares voted rather than an absolute 75% ?

[red ninja] 20/5/2022 17:00

I'd like to believe Brickell would increase the offer price, but I'm not convinced they have to. Why not just buy in the market to get the deal over the line.

[afilip] 20/5/2022 16:58

I'm struggling to reconcile how it was indeed Slater against - announcement mentions a shortfall of less than 5% of the votes, while Slater was at around 10% as of the last notification.

[simon gordon] 20/5/2022 16:54

Maybe to save Slater's face Brickell give another 5p to 25p to get the deal over line? Then again Slater has no leverage, so why give him any more, the other shareholders are cool and he's not talked any around to his viewpoint.

[red ninja] 20/5/2022 16:47

Well if Slaters wanted to really commit to twisting Bricknells arm, I'm thinking why did they not buy more in the markets.

Thus, I'm not convinced they would devote $100 million to RQIH bailout.

Slaters, doubled up at cheaper prices so even if they fail to resist Bricknells, they've increased their payout.

[simon gordon] 20/5/2022 16:43

If they didn't need $100m Slater could block the deal. He's got no leverage.

[simon gordon] 20/5/2022 16:41

Thing is they need $100m to repair the balance sheet. Unless Slater can raise $100m he's got nothing to offer. The majority of shareholders don't want to put any more money in. He's looking a bit stupid. He either gives them $100m or votes to the deal going through. Otherwise the company is in limbo and the rating agencies will be on their case.

[red ninja] 20/5/2022 16:40

Simon,

I'm thinking we'll see buying in the market on Monday.

The accepters should be able to out buy Slaters if they decided to contest it.

[red ninja] 20/5/2022 16:38

afilip,

It's a possibility, but it would seem that they are going for the 175p buy out.

If Slaters don't think they can win they may just throw in the towel.
It's not a good result, but Slaters and everyone else will get 50p more a share.

[simon gordon] 20/5/2022 16:36

Red,

I also bought some as well.

Slater is up against a serious deal maker in Spiegel.

[afilip] 20/5/2022 16:35

Let's not forget that the bidder can also switch to a takeover offer and lower the acceptance threshold...

[red ninja] 20/5/2022 16:32

Just bought a few more at 125p as it may not be a good result but, I'm thinking that they think there is a good chance of taking it over the line next week.

I mean funds voting for the deal just have to increase their holdings and the reward is around 50p a share.

[simon gordon] 20/5/2022 16:25

Looks like Slater is on his own.

Doesn't look like he has a plan to raise $100m.

What can he do?

[red ninja] 20/5/2022 15:25

The meeting started at 2:00pm so I'm hoping that we'll get the result by RNS today.

The price seems to be falling so some people are not waiting around to find what the official result is.

Having said that there are plenty of buys listed so maybe the optimists are right.