ADM Admiral Group Plc

 
TIDMADM 
 
 
   1 November 2018 
 
   STATEMENT RE INVESTMENT IN COMPARE.COM 
 
   Admiral Group plc ('Admiral' or the 'Group') announces that it has 
entered into an agreement with former Admiral Group CEO Henry Engelhardt 
and his wife Diane Engelhardt whereby Diane will invest US$25 million 
into Compare.com ("Compare"). 
 
   As a result of the proposed transaction Diane will hold 17% of the share 
capital of Compare, with Admiral owning 59% and White Mountains and 
Mapfre USA the remaining 24%. Henry will join the Board of Compare. 
 
   The investment will be made at a 15% discount to the valuation of 
previous funding rounds, reflecting challenging current trading 
conditions. Accordingly, Admiral expects to record an impairment against 
the carrying value of Compare with its full year results. The current 
outlook is for the full year Admiral share of loss to be in line with 
the guidance at the 2018 half year results of US$8 million to US$13 
million. 
 
   Henry and Diane currently hold 10.1% of Admiral's issued share capital 
and therefore they are classified as related parties of Admiral. The 
Board is satisfied that the investment is being undertaken on an arms' 
length basis and on terms that are fair and reasonable to shareholders. 
The transaction is a smaller related party transaction under LR 
11.1.10.R. 
 
   Separately, Admiral has provided Compare up to US$10 million by way of a 
convertible loan. 
 
   Andrew Rose, CEO of Compare, commented: 
 
   "We are delighted to secure this investment and we look forward to 
working closely with Henry, who has deep knowledge and expertise of 
Compare and the US market." 
 
   In addition, David Stevens, Admiral Group CEO commented: 
 
   "As outlined at our half year results, Compare is facing challenging 
market conditions in 2018. I remain optimistic over the long-term 
potential for the price comparison channel in the US and I very much 
look forward to having Henry as a close partner to continue building on 
the strong foundations already in place at Compare." 
 
   For further information please contact: 
 
   Admiral 
 
   Marisja Kocznur, Investor Relations      +44 (0) 2920 602 034 
 
   FTI Consulting 
 
   Edward Berry               +44 (0) 20 3727 1046 
 
   This announcement is distributed by West Corporation on behalf of West 
Corporation clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Admiral Group PLC via Globenewswire 
 
 
  http://www.admiralgroup.co.uk 
 

(END) Dow Jones Newswires

November 01, 2018 03:00 ET (07:00 GMT)

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