Major firm halts trading as billion-dollar deal looms
A major Australian law firm has put trading in its shares on hold in the lead-up to the announcement of a billion-dollar acquisition.
Slater and Gordon has announced the execution of an agreement to acquire Quindell plc’s Professional Services Division for upfront consideration of £637 million (A$1.2 billion) and an earn-out based on performance of PSD’s legacy noise-included hearing-loss cases.
The deal is conditional on a majority vote by Quindell shareholders scheduled for 17 April. Slater and Gordon has suspended trading until 2 April.
Quindell’s board has unanimously recommended that Quindell shareholders vote in favour of the transaction.
Slater and Gordon wants to raise about $890 million in new equity to fund the acquisition through a fully underwritten, two for three pro rate accelerated renounceable entitlement offer.
Managing director Andrew Grech said the acquisition was a “transformational opportunity and will allow Slater and Gordon to further penetrate the highly fragmented £2.5 billion UK personal injury market.”
“It further diversifies our sources of legal work, broadening access to claims management companies, insurers and insurance brokers. PSD’s Health and Motor services increase our touch points along the claims value chain, increase client delivery and capture opportunities.”