Predators in £342m swoop on UK law firm
Private equity predator Inflexion with a £342m nosedive into the UK’s largest listed law firm, DWF Group
Private equity bidders have poured into Britain’s largest publicly traded law firm.
In the latest sign of buyout groups once again circling the UK stock market, London-based Inflexion Private Equity Partners approached DWF Group regarding a possible offer of 100p per share worth £342m.
A deal would lead to a big payday for the company’s top lawyers, including CEO Sir Nigel Knowles, whose stake would be valued at £2.68 million.
DWF shares rose 34.1 percent, or 22.3 pence, to 87.8 pence — though they are below the bid price and the 122 pence they hovered at in March 2019.
London-based Inflexion Private Equity Partners approached Britain’s largest listed law firm, DWF Group, regarding a possible offer of 100 pence per share
Based in Manchester and with offices in Europe, North America, the Middle East and Asia, DWF provides legal and business services to companies across a range of industries, including finance, transportation and energy and natural resources. It reported annual revenue of around £350 million last year.
DWF said it was “in talks” with Inflexion about a deal where shareholders would receive 97p per share, as well as a 3p dividend.
The company said that, if such an offer were made, it would “unanimously recommend it” to shareholders.
“Discussions between DWF and Inflexion are ongoing and it is not certain that an offer will be made,” it added.
The talks come amid consolidation among law firms.
British ‘magic circle’ giant Allen & Overy has announced plans to merge with New York-based multinational group Shearman & Sterling to create one of the world’s largest law firms, with turnover in excess of £2.5 billion.