Following evaluation from its Board, R&Q has confirmed that it will be filing for a provisional liquidation in Bermuda and that it expects the previously announced sale of Accredited to Onex Corporation to be implemented through that process.
If you recall, on the 13th of June, R&Q released an update on the proposed sale of 100% of R&Q’s equity interest in Randall & Quilter America Holding Inc., the holding company of the Company’s program management business Accredited, to funds advised by Onex.
This announcement explained that Onex had provided R&Q with a proposed alternative transaction structure to that of the original sale that could be implemented if the closing conditions of the original sale were not satisfied.
Now, following the R&Q Board’s evaluation and consideration of all other relevant factors, it has concluded that this “Alternative Proposal” represents the best option to secure value.
“The implementation of the Alternative Proposal will involve the Company filing for a provisional liquidation in Bermuda and the Board expects the sale of Accredited to Onex to be then implemented through that process,” R&Q said.
R&Q explained that the provisional liquidators would then look to realise value from the firm’s remaining assets, at the end of which the remaining company would be wound up. The Directors believe that, in those circumstances, there will be very little, if any, chance of any value accruing to its shareholders.
R&Q additionally noted that it will now request that trading of its ordinary shares on AIM be suspended with immediate effect and will be filing for provisional liquidation in Bermuda in due course.
Back in October 2023, the non-life specialty insurer announced it had entered into a conditional agreement to sell its Accredited program Management business to private equity investment manager Onex.
In April 2024, R&Q announced it expected the transaction, approved by the shareholders in January 2024, to close in the second quarter of 2024.
According to R&Q, the sale of Accredited is at an enterprise value of $465 million, which represents an expected equity value of approximately $438 million.
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