A Quindell update... {http://betaville123.blogspot.co.uk/2015/06/a-quindell-update.html}
It's been a while since I have written anything on Quindell so I thought I would put together a piece for loyal Betaville readers and followers of the company.
Top sources tell me that Quindell - which recently completed the sale of its professional services division to Slater & Gordon for £640 million - has now received a takeover offer of between £20 million and £30 million for PT Health, a Canadian healthcare and rehabilitation services company.
Quindell has also had offers totalling around £30 million for other parts of the business, according to my well-placed sources.
Now to be clear, a spokesperson for Quindell declined to comment on the above although "people close to the company" claimed the information isn't correct.
Still, I'm inclined to go with my sources on this one as they have been absolutely on the money on this story since I first revealed Slater & Gordon's interest in purchasing Quindell's legal services division earlier this year.
Once Quindell completes the disposals of these non-core divisions, it will be left with Himex, a black box monitoring system for cars, and the Ingenie insurance brokerage, which uses telematics to broker car insurance policies.
The board is also planning to begin the process of handing back around £500 million to shareholders via a share reconstruction after Quindell restates its accounts.
Quindell's auditors are due to hand back its accounts on June 23rd, according to my sources, so the market should see the company restate its accounts later this summer.
Although the restatement of the historic accounts is likely to involve some big numbers, I have been told most of it is connected to the disposed professional/legal services division. Quindell may even get a tax credit to offset future tax on profits following the restatement of accounts, according to my sources.
Meanwhile, the return of cash to shareholders is expected to begin in Autumn 2015, possibly via a share buyback.