Following the compulsory acquisition of its remaining securities by private equity firm Allegro Funds, Slater & Gordon is no longer on the Australian Stock Exchange.
In a market announcement on the afternoon of Friday, 28 April, national plaintiff law firm Slater & Gordon (ASX: SGH) noted that it was set to be removed from the official list at the close of trading on that date.
Its delisting followed the exercising of a right to compulsorily acquire the remaining shares in Slaters by Australian PE firm Allegro funds, which — as of mid-April — had acquired more than 97 per cent of the law firm.
The news follows last week’s filing of a class action by Slaters against telco giant Optus, in the wake of its massive data breach late last year.
On 24 February, Slaters confirmed that the company had signed a bid implementation agreement (BIA) with a subsidiary of Allegro Funds, providing for a recommended off-market takeover for 100 per cent of the listed company shares at $0.55 per share.
The directors of Slater & Gordon “unanimously support” the offer made by Allegro, the firm said at the time, and recommended that its shareholders accept the offer, in the absence of a superior proposal and subject to independent expert guidance.
“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 said in its market announcement.
Speaking to Lawyers Weekly on the same day, Slater & Gordon chief executive John Somerville said that the day-to-day of the legal practice would continue.
“This is not about turnaround, this is not about restructure. This is about investment for growth,” he posited.
When asked if media reports about expectations that Allegro would recapitalise the listed law firm and execute a turnaround plan were incorrect, Mr Somerville said: “Yes.”
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