November 1, 2018 / 7:06 AM / 15 days ago

BRIEF-Admiral Group ex-CEO to invest in Compare.com

Nov 1 (Reuters) - Admiral Group PLC:

* REG-ADMIRAL GROUP PLC : STATEMENT RE INVESTMENT IN COMPARE.COM

* SAYS ADMIRAL GROUP PLC (‘ADMIRAL’ OR ‘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

* SAYS AS A RESULT OF PROPOSED TRANSACTION DIANE WILL HOLD 17% OF SHARE CAPITAL OF COMPARE, WITH ADMIRAL OWNING 59% AND WHITE MOUNTAINS AND MAPFRE USA REMAINING 24%. HENRY WILL JOIN BOARD OF COMPARE

* SAYS INVESTMENT WILL BE MADE AT A 15% DISCOUNT TO VALUATION OF PREVIOUS FUNDING ROUNDS, REFLECTING CHALLENGING CURRENT TRADING CONDITIONS

* SAYS ACCORDINGLY, ADMIRAL EXPECTS TO RECORD AN IMPAIRMENT AGAINST CARRYING VALUE OF COMPARE WITH ITS FULL YEAR RESULTS

* SAYS CURRENT OUTLOOK IS FOR FULL YEAR ADMIRAL SHARE OF LOSS TO BE IN LINE WITH GUIDANCE AT 2018 HALF YEAR RESULTS OF US$8 MILLION TO US$13 MILLION

* SAYS HENRY AND DIANE CURRENTLY HOLD 10.1% OF ADMIRAL’S ISSUED SHARE CAPITAL AND THEREFORE THEY ARE CLASSIFIED AS RELATED PARTIES OF ADMIRAL

* SAYS BOARD IS SATISFIED THAT INVESTMENT IS BEING UNDERTAKEN ON AN ARMS’ LENGTH BASIS AND ON TERMS THAT ARE FAIR AND REASONABLE TO SHAREHOLDERS

* SAYS SEPARATELY, ADMIRAL HAS PROVIDED COMPARE UP TO US$10 MILLION BY WAY OF A CONVERTIBLE LOAN Source text for Eikon: Further company coverage: (Reporting By Simon Jessop)

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