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‘No liability’ agreed to in termination of AFL-GTC merger, listed firm says
AF Legal Group has noted the agreement it reached with GTC Legal Group on the termination of the proposed merger between the two entities, which was set to create one of Australia’s largest personal services law firms.
Jerome Doraisamy
As reported by Lawyers Weekly, on the morning of Thursday, 24 November, AF Legal Group (ASX: AFL), also known as Australian Family Lawyers or AFL, announced to the market that its proposed merger with GTC — which was supposed to be a “seminal moment for the personal legal services industry” — was being terminated.
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Earlier this month, AFL executive director Grant Dearlove spoke to Lawyers Weekly about why the “significant and unprecedented” merger would have such an impact on Australia’s legal services marketplace.
GTC confirmed, following the publication of that market announcement, that it was the party that had moved to terminate the agreement.
In conversation with Lawyers Weekly, GTC managing director James Stevens noted that the termination of the proposed merger would not stop the entity from pursuing consolidation and expansion plans, including via prospective overseas opportunities.
“Although we are disappointed by the outcome of our due diligence and the fact the proposed merger didn’t proceed, we learned a lot from the experience, and we wish the staff and shareholders of AFL all the best,” he told Lawyers Weekly.
In a subsequent market announcement on Friday, 25 November, AFL said that, since receipt of notice from GTC that it was terminating the transaction, it had engaged with GTC and that “both parties have agreed to terminate the transaction on a no liability basis”.
Moreover, the statement continued, both parties have agreed, AFL said, to preserve the other party’s confidential information, other than as required by law.
“AFL will return to focusing on its existing business interests,” the listed firm concluded.
Lawyers Weekly reached out to GTC following the latest market announcement; however, the entity said it could not comment further.
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