Quindell continues clean-up job

A major tidy-up is underway at Quindell aimed largely at making the company more transparent and investible. Accountants PwC and future chairman and executive deputy chairman Richard Rose and Jim Sutcliffe, both conducting their own reviews of the insurance outsourcer, are having a big influence. PwC recently delayed publication of its report into accounting practices and cash generation, but the sale of Quindell's stake in Nationwide Accident Repair Services is a welcome part of the healing process.

Still in lengthy talks to sell its professional services operation to Aussie law firm Slater & Gordon, offloading its stake in AIM-listed Nationwide Accident Repair Services has proved rather easier. Quindell yesterday sold 10.9 million shares at 65p, raising net funds of £7.1 million, although the stake was sold at a 22% discount to Nationwide Accident Repair Services closing price Wednesday.

Quindell is readying other non-core assets for sale, too. That includes consolidating some of its property services interests. The company is issuing nearly 3.7 million Quindell shares, with an option for 200,000 more, to Ben Williams, a director at BE Insulated (UK) Limited (BEI), as payment for the 50% of BEI Quindell does not already own.

The company's original 50% stake formed part of the May 2013 acquisition of what is now Quindell Property Services. The shares will also cover the purchase of Carbon Reduction Company (UK) Limited, the installation arm of BEI.

Tidying up outstanding legal action also makes good sense. It's why Quindell is buying up the 11.7% of American subsidiary Navseeker it doesn't own. While not admitting guilt, the company will hand over 684,770 Quindell shares plus $1 million in cash in return for the plaintiff's stakes in Navseeker.

Quindell subsidiary Himex, which became the controlling shareholder of Navseeker in April 2012, was accused of effectively selling the rights to the use of the company's intellectual property to Quindell. Himex shareholders received $240 million in cash and Quindell shares as part of a series of lucrative transactions. The plaintiffs allege that none of the money actually went to the company and its minority stockholders who own the company property.

Himex's Evogi business, which supplies telematics data for insurance and fleet management systems, remains a core part of Quindell's Connected Car business, said the UK firm. It makes money by fitting "black boxes" to cars which monitor driving habits. If a driver has a crash, it will know about and get access to business from the claims process.

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