Transaction with Phoenix Asset Management Partners

RNS Number : 9213D

Randall & Quilter Inv Hldgs Ltd

01 July 2019

 

Randall & Quilter Investment Holdings Ltd.

("R&Q, "Group" or the "Company")

Transaction with Phoenix Asset Management Partners Ltd

1 July 2019

On 25 November 2014, R&Q announced it had entered into a joint venture arrangement with Phoenix Asset Management Partners Ltd ("Phoenix") to acquire (re)insurance debt in insolvent estates. At the same time, R&Q sold the economic interest in 50% of its existing (re)insurance debt assets to Phoenix.

Whilst there remains an active market in such legacy debt positions, pricing has become competitive and thus less attractive than previously. Accordingly, we have agreed to terminate the joint venture and to acquire the residual Phoenix interest in R&Q's RQLM operations (the "Transaction"). The cash consideration of $4.5m has been calculated based on the expected cashflow of the residual (re)insurance debt recoveries, discounted at an appropriate cost of capital, in line with R&Q's return targets.  The consideration is a slight discount to the fair value of these assets at the last published Group balance sheet date of 31 December 2018. In the financial year ended December 2018, RQLM reported an unaudited loss of $625,465, which includes extraordinary expenses.

Due to the size of Phoenix's holding in R&Q, the Transaction, when aggregated with the related party transaction disclosed by the Company on 7 February 2019, is considered to be a related party transaction pursuant to AIM Rule 13 of the AIM Rules.

The Directors consider, having consulted with Numis, that the terms of the Transaction are fair and reasonable insofar as shareholders of the Company are concerned.

Enquiries to:

Randall & Quilter Investment Holdings Ltd. Ken Randall Tel: [phone] Numis Securities Limited (Nominated Adviser) Stuart Skinner Tel: [phone] Charles Farquhar Tel: [phone] Shore Capital Stockbrokers Limited Stephane Auton/James Thomas Tel: [phone] FTI Consulting Edward Berry/Tom Blackwell Tel: [phone]

Notes to Editors:

About R&Q 

The overall mission of the Bermuda based Group is to:

·      generate profits and capital extractions from expert management of legacy non-life insurance acquisitions/ reinsurances, including in Lloyd's; and 

·     grow commission income from its licensed (and rated) carriers in the US and EU/UK, writing niche and profitable program business, largely on behalf of highly rated reinsurers.

Our aim is to continue to grow sustainable profit streams to support our business model and increase book value and cash distributions to shareholders. 

The Group was founded by Ken Randall and Alan Quilter in 1991.

Legal Entity Identifier (LEI): 2138006K1U38QCGLFC94

Website: www.rqih.com

 

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