RAJESH RAJENDRAN NAIR
The board of Directors of Work Group plc has announced that it has reached agreement with the board of Gordon Dadds Group Limited on the terms of 'a proposed recommended all share offer for the entire issued and to be issued share capital of Gordon Dadds'. Adrian Biles, Managing Director of Gordon Dadds said: ‘The admission to AIM will provide the necessary capital for the Group's next phase of development and will also serve to enhance the Group's profile with clients and potential acquisition targets. We have a clear strategy for creating a strong, fast growing business and we look forward to delivering value to our shareholders and partners.’
Pleased to have reached agrement
He added: ‘The board of Gordon Dadds is very pleased to have reached agreement on the terms of a proposed recommended offer by Work Group. There is a significant opportunity to create a substantial legal practice in the UK and the proven Gordon Dadds' business model is uniquely placed to be a major consolidator in this fragmented market. Through the Gordon Dadds and Prolegal business units, the Group will provide an attractive platform for legal practices to gain the necessary scale to compete in the current market environment.
Conditionally raised £20 million
The company has conditionally raised £20 million via the placing of 14,285,714 new ordinary shares at a price of 140 pence per share and the net proceeds of the Placing are expected to be approximately £17.9 million which will be used to repay borrowings and to fund further acquisitions and the working capital requirements of the Enlarged Group.
'Value enhanicing for shareholders'
Commenting on the offer, Simon Howard, Chief Executive of Work Group, said: ‘Having evaluated a number of proposals the Existing Directors believe that Gordon Dadds' operations are compatible with the Company's investing policy and will be value enhancing for Shareholders. The Directors believe that the Enlarged Group will benefit from the significant opportunity presented by the UK legal services market.’