B.P. Marsh & Partners (AIM: BPM) has agreed to sell its entire stake in JMD Specialist Insurance Services Group (JMD) to Randall & Quilter Investment Holdings (AIM: RQIH) for 650,000 shares in R&Q, which is at prersent worth 23% more than the £569,000 valuation put on JMD back in July 2009.
In additional to the consideration, B.P. Marsh’s outstanding loan of £100,000 will be repaid in full in cash on completion.
B.P. Marsh’s board said that the receipt of the stake in R&Q was in line with its strategy of focusing on suitable investments and enhancing value of the existing portfolio, while its disposal of its stake in JMD demonstrated the company’s ability to exit investments after short periods.
“This transaction marks a further achievement in our strategy to position the group to deliver long term growth potential for our shareholders and to divest operations that we believe do not meet the criteria of our investment strategy. Whilst we acknowledge that the transaction represents a temporary departure from our traditional strategy of investing in minority stakes of between 20-49% in private financial services companies, we believe the investment in R&Q is in the best interest of shareholders and will add depth to our portfolio,” said chairman Brian Marsh. http://www.proactiveinvestors.co.uk/companies/news/12471/bp-marsh-sells-stake-in-jmd-insurance-ops-to-randall-quilter--12471.html
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