Slater & Gordon (ASX:SGH) pens deal for potential takeover by Allegro

• Slater & Gordon (SGH) may be absorbed by investment manager Allegro, with its board unanimously recommending a 55-cent takeover offer to shareholders
• The two companies have signed a bid implementation agreement for the potential takeover, which requires at least 50.1 per cent of SGH shareholders to accept
• Slater & Gordon says coming under Allegro’s ownership could provide a “stable capital base and a supportive operating environment” for the company
• Allegro says it has “significant experience” investing in purpose-led professional services organisations
• Slater & Gordon shares are up 6.19 per cent to 60 cents at 12:19 pm AEDT

Slater and Gordon (SGH) could be absorbed by investment manager Allegro, with the companies on Friday announcing the signing of a bid implementation agreement (BIA).

Allegro has offered 55 cents per share for full control of Slater and Gordon in an off-market takeover.

The SGH board has unanimously recommended shareholders accept the offer, provided an upcoming independent expert report deems the takeover price fair and reasonable.

The company said coming under Allegro’s ownership could result in a “stable capital base and a supportive operating environment” for the company.

“The board and key management personnel believe Allegro’s investment in Slater & Gordon will bring together a hands-on Australian investor focussed on a growth-oriented partnership with one of Australia’s leading consumer law firms built on social justice values,” SGH Chairman James MacKenzie said.

“Slater & Gordon shares are highly illiquid. The offer is all-cash and provides certainty of value for shareholders.”

The Allegro offer comes with a 50.1 per cent minimum acceptance condition from SGH shareholders.

Allegro Founding Partner Adrian Loader said the company was “excited” to partner with the Slater & Gordon team.

“Allegro has significant experience investing in purpose-led professional services organisations such as Slater & Gordon and looks forward to working with its strong team of lawyers whom we are keen to retain, support and incentivise,” Mr Loader said.

Slater & Gordon shares were up 6.19 per cent to 60 cents at 12:19 pm AEDT.