Quindell spends 3.1m gaining control of AI Claims

Outsourcing firm Quindell Portfolio has spent 3.1m pounds increasing its stake in AI Claims, which manages motor insurance claims.

Quindell now owns 77.6% of AI, and has offered to buy the remaining shareholders out at 24p per share. On Friday the stock closed at 19.05p.

Shareholders may also choose to exchange their AI stock for Quindell shares at a rate of one to three or one to 3.2 if they agree a "lock-in" clause.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

On a cash basis the offer values AI at £14.9m, with Quindell arguing the acquisition broadens its offering in the insurance sector.

Shares in AI were trading at 23.6p at 09:17, up 19.6% (although, obviously, this simply reflects the offer price). Quindell shares were up very slightly at 09:45, sitting at 7.64p, a gain of 0.2%.

BS