Quindell to suspend shares on AIM as name change approved

Quindell is planning to suspend its shares on the AIM next month as it awaits a court decision on its share merger plan.

The shares will be suspended for three days from 7.30am on Wednesday 16 December until Monday 21 December.

The court hearing on 16 December will decide whether the company’s plan for a 10-for-one share merger and a reduction of shareholder capital, as part of a previously announced £414m payment to shareholders, can go ahead.

The company said it wanted to wait until the following Monday to resume trading, to avoid any market volatility or confusion in the days immediately after the court hearing.

Under the proposed share merger, every 10 shares with a nominal value of 1p will become one share with a nominal value of 10p.

The company held a general meeting today in which shareholders voted on planned changes, including the share merger.

They also approved a change of name for the insurance technology firm from Quindell to Watchstone Group.

Quindell revealed on 2 November that it was planning to return £414m to shareholders, or 90p a share, as the first stage in an overall 100p a share return. It expects to pay the remaining 10p a share at the end of 2016.

The payment is being part-funded by the proceeds from Quindell’s £637m sale of its professional services division to Australian law firm Slater and Gordon.