R&Q

The company must launch a $100mn placement against the backdrop of a failed takeover deal and a 40% share price collapse.

The legacy and program specialist is pursuing a $100mn rights issue after the collapse of its sale to 777 Partners-owned Brickell.

The company confirmed that shareholders voted against a proposed takeover by the 777-owned insurance arm, after its suitor stated its intention to terminate the deal.

Randall & Quilter (R&Q) has received a letter from Brickell PC Insurance Holdings advising it that it is “in breach of certain obligations” under the terms of its takeover agreement.

The adjourned meeting will take place on May 23, where shareholders will vote on a deal which would see Brickell pay £482mn to acquire R&Q.

The deal will also provide $100mn in new equity funding to the legacy carrier.

Under the partnership, the pair is eyeing up a targeted capacity of about £1bn in GWP over the period.

The legacy carrier said it expected cross-trading on the OTCQX to widen its investor base and support liquidity on the LSE AIM.

The business has reported sustained strong growth in its programs segment.

He will join Randall and Quilter on 1 October 2021 and report to executive chairman William Spiegel.

The portfolio has no active client relationships and was underwritten from 1969 onwards.

The executive said a capital-light structure would enable continued investment in underwriting, origination and servicing.