R&Q Insurance Holdings Ltd on Friday said it has entered into a conditional agreement to sell 100% of its interest in Randall & Quilter America Holding Inc.

In September, it confirmed that it was in ‘an advanced stage of discussions’ with Onex Corp to sell programme management business Accredited. Onex is a Toronto-based private equity firm.

R&Q Insurance previously had said it was reviewing strategic options, which included the legal separation of Accredited and R&Q Legacy.

On Friday, it said it has entered an agreement to sell Accredited for $465 million, representing an expected equity value of approximately $438 million.

It noted that net cash proceeds from the sale are expected to be approximately $300 million. Cash proceeds available for utilisation immediately on closing are expected to be between approximately $170 million and $210 million, it added.

‘The available net cash proceeds will be entirely used to facilitate a material de-leveraging of R&Q,’ the company said.

Chair Jeff Hayman said: ‘The sale will generate meaningful net cash proceeds which will facilitate a material de-leveraging of the group while also strengthening its liquidity and working capital position, which will support R&Q’s ongoing commitments and requirements. Furthermore, the sale will create a simpler and better capitalised R&Q which will be positioned to continue to execute the existing strategy of transitioning to a capital efficient and stable recurring fee-based business model.’

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