Shares in legal services outfit DWF rocketed today after the firm revealed it was in talks with London-based Inflexion Private Equity Partners regarding a possible buyout.
In a statement to the London Stock Exchange, DWF said it was in talks for a deal worth about £342m.
Shares in DWF soared as much as 40 per cent to 92 pence apiece in morning trade, following media reports on the possible takeover.
DWF said its shareholders would receive 100 pence per share, which includes a cash consideration of 97 pence and a dividend of 3 pence for the six months to April 30.
The offer represents a premium of 52.7 per cent to DWF’s Friday closing price.
Manchester-based DWF provides legal and business services to companies across sectors including financial, transport and energy and natural resources. It reported annual revenue of about £350m pounds for fiscal year 2022.
The takeover bid comes after a quiet period for dealmaking in which volatile markets and rising interest rates have dissuaded buyers.
In a half year review of takeover activity in the UK last week, London-listed investment bank Peel Hunt said dealmaking had “rebounded to an extent” this year and private equity’s interest in listed firms had returned but “not with the conviction that many anticipated”.
Just £12bn worth of take-private deals were tabled by buyers in the six months to the end of June, down 45 per cent on the second half of last year, according to Peel Hunt’s analysis.