Slater & Gordon shareholders buy into Quindell deal


Australia: investors leaping with excitement

Australia: investors leaping with excitement

Institutional investors have snapped up new shares in Slater & Gordon to fund its purchase of Quindell’s professional services division (PSD), it announced overnight.

Around 70% of the £637m initial purchase price – £456m – is being funded through new shares, with the rest through bank debt. In just three days the institutional offer was fully subscribed, raising £312m, with most existing investors buying into the issue.

Today the offer to retail shareholders, which aims to raise £144m, has opened following a trading halt since Monday due to the offer for the PSD.

The alternative business structure’s group managing director, Andrew Grech said: “We are very pleased with the terrific level of demand from both our existing shareholders and new investors. Feedback from the investment community in the past week has been very positive.

“There is a high level of support for the strategic rationale underlying the PSD acquisition and our ability to successfully optimise the business.”

At A$7.55, Slater & Gordon’s current share price is at its highest ever; a year ago it was A$4.50.

Meanwhile, there was embarrassment for Quindell yesterday morning after its shares were suspended, and some trades that mistakenly occurred after the suspension were cancelled. This was because, it announced later in the day, it had understated the PSD’s profits in the shareholder circular issued at the start of the week by not including the results of some parts of the business that it should have done.

Quindell said that during the financial year to 31 December 2013, the profits before tax generated by the PSD contributed £96m to the group, rather than the £82.5m it had said earlier in the week. Similarly, profits for the first six months of 2014 should have read £130.7m instead of £113.4m.

The suspension has now been lifted.

Slater & Gordon issued a statement to say the error did not affect its own shareholder disclosure “as all financial information contained in Slater & Gordon’s disclosure materials was based on Slater & Gordon’s own assessment of that information, and did not rely on information contained in Quindell’s shareholder circular”.

Tags:




Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blog


The SRA – an unprecedented crisis of confidence

Be in no doubt that yesterday marked the deepest crisis that the Solicitors Regulation Authority has ever faced. It needs to show humility and accountability.


Ten questions to ask a potential financial planning partner

The Solicitors Regulation Authority’s codes of conduct are clear how crucial proper due diligence is when assessing third-party partners.


Seasonal law firm marketing: is it worth it?

Marketing is essential for any law firm looking to attract clients and build its brand. One such strategy that has gained traction in recent years is seasonal marketing.


Loading animation