Takeover Offer Wins Support of Slater & Gordon Board, Valuing the Company at $78 Million

Takeover Offer Wins Support of Slater & Gordon Board, Valuing the Company at $78 Million 2

Slater & Gordon has accepted an offer from Sydney-based Allegro Funds for an off-market takeover of 100 per cent of the listed law firm shares at a price of $0.55 per share.

The offer values the company at approximately $78 million, which is different from earlier media speculation that estimated a value of $150 million.

The directors of Slater & Gordon have unanimously recommended that its shareholders accept it, provided that no better proposal emerges and subject to independent expert guidance.

The firm has experienced profits in the UK following its expansion in both the UK and the Australian markets.

“The board has carefully considered the offer and concluded the value and certainty provided provides greater benefit to shareholders than retaining their shares,” the firm submitted.

In a statement, Slater & Gordon chair James MacKenzie said that the board and key management personnel believe that Allegro’s investment in the national plaintiff firm “will bring together a hands-on Australian investor focused on a growth-oriented partnership”.

“Slater & Gordon shares are highly illiquid,” he continued. “The offer is all cash and provides certainty of value for shareholders. Allegro’s investment also presents an opportunity for Slater & Gordon to simplify its capital structure, which is currently dominated by offshore hedge funds

The company’s board and key management personnel believe that Allegro’s investment will result in a growth-oriented partnership and bring in a hands-on Australian investor.

Additionally, Allegro’s investment presents an opportunity for Slater & Gordon to simplify its capital structure, which is currently dominated by offshore hedge funds.

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