Brief: R&Q Insurance Says Proposed Sale Of Co’s Program Management Business For Enterprise Value Of $465 Mln

R&Q Insurance Holdings

20/10/2023 18:04

Oct 20 (Reuters) - R&Q Insurance Holdings Ltd  RQIH.L :
    * PROPOSED SALE OF R&Q’S PROGRAM MANAGEMENT BUSINESS
    * PROPOSED SALE OF ACCREDITED FOR AN ENTERPRISE VALUE OF
$465M
    * PROPOSED DEAL FOR EXPECTED EQUITY VALUE OF APPROXIMATELY
$438
MILLION
    * AVAILABLE NET CASH PROCEEDS WILL BE ENTIRELY USED TO
FACILITATE
A MATERIAL DE-LEVERAGING OF R&Q
    * UPON CLOSING OF SALE, PAUL BRADBROOK, CURRENTLY CHIEF
ACCOUNTING
OFFICER OF R&Q, WILL BECOME CHIEF FINANCIAL OFFICER OF R&Q AND
MEMBER OF BOARD
    * UPON CLOSING OF SALE, GROUP NON-EXECUTIVE CHAIRMAN JEFF
HAYMAN
TO ACT AS CHAIRMAN AND INTERIM CHIEF EXECUTIVE OFFICER OF R&Q
    * BOARD WILL INITIATE A SEARCH TO APPOINT A NEW CHIEF
EXECUTIVE
OFFICER OF R&Q AT APPROPRIATE TIME
    * SALE IS CONDITIONAL ON TRANSFER OF R& Q CEO , WILLIAM
SPIEGEL
AND CFO , THOMAS SOLOMON TO ACCREDITED UPON CLOSING
    * BOARD IS OF VIEW THAT CURRENT FINANCIAL LEVERAGE OF R&Q IS
"UNSUSTAINABLE"
    * BOARD WILL ALSO CONTINUE TO EXPLORE POTENTIAL TRANSACTIONS
TO
DE-RISK AND REDUCE VOLATILITY IN R&Q LEGACY'S BALANCE SHEET
    * CONDITIONAL DEAL WITH FUNDS ADVISED BY ONEX CORP TO SELL
100% OF
EQUITY INTEREST IN RANDALL & QUILTER AMERICA, HOLDING CO OF
ACCREDITED
    * BOARD BELIEVES THAT DOWNGRADE BY AM BEST OF ACCREDITED
WOULD
HAVE MATERIAL IMPLICATIONS ON R&Q'S ABILITY TO CONTINUE AS GOING
CONCERN

Source text for Eikon:  ID:nRST8686Qa 
Further company coverage:  RQIH.L 

 (Reuters.Briefs@thomsonreuters.com)