Mission Capital will cease to be a property-focussed company following a proposed reverse-takeover acquisition.
The embattled company announced today that it had signed a conditional contract for the acquisition of the whole of the issued share capital of Quindell, a finance, insurance and utilities reselling and sales outsourcing company.
The purchase will lead to the readmission of Mission’s shares to trading on AIM.
The shares were cancelled on 14 March after Mission failed to meet a 31 July deadline by which it had to make an investment under AIM rules.
Management had previously blamed a legal dispute with co-founder and former chairman Neil Sinclair and the deterioration of the property market for the firm’s poor performance.
As payment for the purchase, Quindell’s shareholders will receive new shares in Mission Capital amounting to 92% of the enlarged company.
The market capitalisation of Mission following admission to AIM is expected to be £33.32m.
On admission, Mission Capital chairman Philip Goldenberg will step down and Quindell founder, Rob Terry, will become chairman and chief executive.
The board will also include executive director Dominic Milton and three non-executive directors, Steve Scott and Tony Bowers from Quindell, and Robert Burrow, a non-executive director of Mission Capital.
The proposal is subject to shareholder approval at a meeting scheduled for 16 May. However, Mission said it already had irrevocable undertakings to vote in favour of the venture from 57% of the company’s shareholders.
nathan.cross@estatesgazette.com
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