LONDON (Alliance News) - Quindell PLC Thursday said that its shares will be suspended from December 16 pending a court hearing about its planned return of capital to shareholders.
At the company's annual general meeting Quindell shareholders approved a resolution to change the company's name to Watchstone Group PLC, as part of a move away from the company's troubled past.
The company intends to return 90.00 pence per share, or GBP414.0 million in total, to its shareholders following the sale of its professional services division to Australian law firm Slater & Gordon. This return along with a capital reduction is subject to court approval, and should it go ahead then Quindell said it would expect the company's shares to devalue by 90 pence before its 1 for 10 consolidation goes ahead.
The company said that, due to the gap between the record dates for the return of capital and the consolidation, and the likely "impact" of the outcome of the court hearing on the company's share price, there is a risk of "confusion in the market and volatility in the share price."
As a result Quindell's shares will be suspended from GMT0730 Wednesday December 16 to the following Monday, December 21.
If the court rejects Quindell's proposals, its will request for its shares to re-commence trading Thursday 17, and the consolidation will not take place.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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