The RNS yesterday confirmed it is Slater and Gordon who are carrying out due diligence with regard to making a formal offer for Quindell Legal services.
We also now have an announcement from the Australian stock exchange that adds more detail.
Both S&S and Quindell share prices have risen since the announcements.
S&G have indicated in their announcement that as part of the deal some cases will be transferred to them.
This will be part of the exclusivity arrangements and as way of collaboration we know some consultants who work for Mobile Doctors have had their work loads curtailed. This would indicate that potentially S&G’s supply chain are dealing with these cases.
The only question now is what offer is being made for Quindell Legal Services and how it will be structured.
The FT article issued yesterday indicates that 6 times earnings will be the expected offer.
Using this multiple it would be easy to see how a valuation of £1bn+ could be achieved.
We now have to wait for negotiations to be concluded before we know the offer price and the make up of the offer. If Quindell have another bidder in the wings or can convince S&G they have another bidder the offer will be close to £1bn+ suggested by many.