Quindell plans to return GBP415m to shareholders

Beleaguered insurance technology group Quindell announced plans to return £415m to shareholders in December following the sale of its professional services division, subject to court approval.

The company, which is currently being investigated by the Serious Fraud Office over its accounting policies, said it will repay 90p per share and a further 10p per share in cash following the anticipated release at the end of 2016 of the £50m warranty escrow put in place as part of the disposal.

Quindell said that as previously announced, it will make further distributions as contingent consideration from the disposal of the PSD is realised.

The company said it has performed a preliminary valuation exercise based on the information available at the point of disposal and has determined that a prudent estimate of the current value of the contingent consideration is around £39.6m.

Quindell expects to issue a circular relating to the capital repayment to shareholders on 11 November 2015, with a court hearing to follow on 16 December 2015.

At 1150 GMT, Quindell shares were down 2% at 100.25p.