Company also plots to share merger and reduction of capital

Indro mukerjee july 2015 cropped

Quindell is planning to change its name to Watchstone Group, subject to shareholder approval.

The insurance technology company is also planning a 10-for-one share merger and a reduction of shareholder capital as part of the previously announced £414m payment to shareholders.

The company will hold a general meeting on 26 November to allow shareholders to vote on the planned changes.

Quindell has previously indicated that it was likely to change its name. The change will help the company to make a break from its troubled past and allow it to move forward under new chief executive Indro Mukerjee (pictured).

Under the proposed share merger, every 10 shares with a nominal value of 1p will become one share with a nominal value of 10p.

The company explained: “The board considers that the current issued share capital of the company is considerably higher than similar sized companies on AIM and believes that this negatively affects investors’ perception of the company.”

Quindell revealed on 2 November that it was planning to return £414m to shareholders, or 90p a share, as the first stage in an overall 100p a share return. It expects to pay the remaining 10p a share at the end of 2016.

The payment is being part-funded by the proceeds from Quindell’s £637m sale of its professional services division to Australian law firm Slater and Gordon.

To enable the payment to shareholders, Quindell will undergo a reduction in capital. The company warned that if shareholders do not approve the capital reduction, the 90p a share capital return will notgo ahead.