Shares in DWF Group experienced a significant boost on Friday following the announcement of a recommended all-cash offer from Inflexion Private Equity Partners. The deal values the company at an impressive £342 million ($440.1 million).
At 1031 GMT, DWF’s shares surged by 13%, up 11.2 pence to reach 96 pence.
Last week, both companies confirmed that they were engaged in talks regarding a potential acquisition of DWF, a renowned provider of legal and business services. This news caused an immediate increase in the price of DWF shares.
As per the agreed terms, DWF’s shareholders will receive a total consideration of 100 pence per share. This figure comprises 97 pence per share in cash and an additional 3 pence per share as a special dividend. The offered price presents a remarkable 53% premium to DWF’s closing price of 65.5 pence on July 7.
DWF’s directors have expressed their intention to recommend that shareholders vote in favor of the acquisition, deeming the terms to be fair and reasonable.
According to Chairman Jonathan Bloomer, “The DWF board of directors recognizes the opportunities that could be delivered under private ownership with Inflexion, which includes access to significant capital to invest in staff and technology, accelerated lateral hiring, and transformative acquisitions across jurisdictions.”
The transaction is anticipated to be completed in the fourth quarter of 2023, subject to certain conditions.