|
(Correcting the spelling of Brickell PC Insurance Holdings LLC.)
Randall & Quilter Investment Holdings Ltd on Wednesday said Brickell PC Insurance Holdings LLC wants to exercise its right to terminate its £482 million takeover of the insurance company.
Shares in the Bermuda-based company were down 37% to 88.00 pence each in London on Wednesday midday, giving it a market capitalisation of £240.2 million.
At the start of April, R&Q said it had accepted a £482 million takeover offer from 23% shareholder Brickell. Brickell also committed to provide $100 million in new equity funding to R&Q to de-leverage its balance sheet.
However, on Monday, R&Q said it had received a letter from Brickell alleging that it was in breach of certain obligations under the terms of the deal.
Brickell said it was exercising its right to terminate the offer immediately.
On Wednesday, R&D said it does not agree that it is in breach as suggested and therefore Brickell does not have the right to terminate the contract. Accordingly, R&D believe that the acquisition and the funding remain in effect.
R&Q added that it intends to adjourn a special general meeting due Wednesday at 1600 BST to agree on the acquisition. It has received indications that if the meeting is adjourned, the resolutions that need to be passed may receive further shareholder support. However, if before Wednesday at 1600 BST, R&Q receives any indications that shareholders will vote against the proposed resolutions, even with further adjournment, then the meeting will go ahead as proposed.
Copyright 2022 Alliance News Limited. All Rights Reserved.
|
