Randall & Quilter Investment Holdings Ltd. (R&Q) has agreed to terminate its joint venture arrangement with Phoenix Asset Management Partners Ltd, which it formed in 2014 to acquire re/insurance debt in insolvent estates.
R&Q is set to acquire the residual Phoenix interest in the RQLM operations for a cash consideration of $4.5 million, based on the expected cashflow of the residual re/insurance debt recoveries.
Whilst the company acknowledged that there remains an active market in such legacy debt positions, it said that pricing has become less attractive due to competition.
The cost of the acquisition is reportedly at a slight discount to the fair value of the assets in questions, according to the last published group balance sheet on December 31, 2018.
In the financial year ended December 2018, RQLM reported an unaudited loss of $625,465, including extraordinary expenses.
R&Q stated that its Directors consider the terms of the transaction to be fair and reasonable insofar as its shareholders are concerned.
