Sunday Times article and £900m offer.

The following is key information from the Sunday Times article today. See Here for article.

1. Slater and Gordon on the verge of sealing a takeover of Quindell’s legal services division that could eventually value the unit at up to £900m.

2. £640m cash offer.

3. Deal includes future revenue from noise-induced hearing loss cases.

4. Quindell should receive an additional  £100m and £300m over the next three years.

5. Expect announcement on or before the 23rd March 2015.

Based on the accuracy of the authors previous reports and market noise I have every reason to believe  the contents of the Sunday Times to be accurate.

We now wait to see if Quindell accept or reject the offer.

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One response to “Sunday Times article and £900m offer.

  1. It would indeed be a turnaround for Quindell if the news carried in this article is true.

    My concern is the provenance of the article.

    Another concern is how SGH would fund a bid of the scale mentioned in the article given the resources at their disposal and their gearing ratio that they would want to maintain. They would need a significant fund raising, raising their debt levels at the same time to maintain gearing and a deal of the size mentioned would effectively double SGH’s market cap. That would put them at risk given that half their business would now be based on an unknown component, based in another geography.

    Finally, SGH pay x1 revenue excl accruals for smaller acquisitions. A greater part of QLS’s revenue includes accruals and so I ponder the suggested price.

    Like

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