Just rummaging through Quindell latest report and thought this is worth posting. A question was asked a week or so ago about how long the warranty is held in escrow.
Quindell say 18 month from 1 June - therefore Dec 2016. What I find more interesting is the warranty is capped at GBP100m. Without thinking to hard about it I had assumed we could only call on 50m if something was misstated (excluding normal legal rights). Quindell state GBP100m. So if S&G have being misled in some information about asset values or other material fact then we can claw back up to GBP100m.
Deal agreed and announced on 30 March 2015 with completion achieved on 29 May 2015
£5m held in escrow for completion process, six months to release £50m held in escrow for warranties, which are capped at £100m, 18 months to release
Deferred consideration estimated at £39.6m, first receipts due in second half of 2016 and continue up to end of 2018. To be prudent we have not recorded this contingent amount in our books at the half year
These figures differ from the estmates given in the 2014 strategic report as those did not reflect actual movements in net assets and intercompany balances secled out of the total consideration received
SGH Price at posting:
$2.78 Sentiment: Buy Disclosure: Held
