Slater & Gordon (SGH) will go ex dividend on 20/9/2012. The current dividend payment is 3.5 cents and it is 100% franked. The record date is 26/9/2012 and the dividend will be paid on 26/10/2012. Based on the full year payment the dividend yield is 3.0%.
*Current Yield: 1.8% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 13/9/2012. Current yield is based on the current dividend payment only.
WesTrac Pty Limited, a wholly owned subsidiary of Seven Group Holdings Limited (SVW), and Caterpillar Inc. announced that the companies have reached an agreement for WesTrac to acquire from Caterpillar the distribution and support business formerly operated by Bucyrus in Western Australia, Australian Capital Territory and New South Wales. After closing, WesTrac expects to begin providing sales, service and support for former Bucyrus mining products in these territories. The transaction is valued at approximately USD$400 million and SGH will fund the transaction through a new five year debt facility. Excluding transaction costs, the acquisition is expected to be largely EPS neutral for the remainder of the financial year ending 30 June 2012, and accretive thereafter.
WesTrac estimates the annual revenues for the Bucyrus distribution and support business to be in the range of A$600 million to A$650 million for the upcoming 2013 financial year. Following completion, WesTrac will employ approximately 430 former Bucyrus employees and contractors in facilities in Western Australia and New South Wales. The acquisition of the Bucyrus distribution and support business will enhance our leading position in the supply and service of heavy equipment to the mining and construction sectors in Western Australia, Australian Capital Territory and New South Wales” said Mr Jim Walker,
SGH comprises WesTrac Group, National Hire Group and significant shareholdings in major media companies in Australia – encompassing broadcast and subscription television, magazine and newspaper publishing, and online and new media technologies. WesTrac Group is the sole authorised Cat dealer in Western Australia, New South Wales/ACT and in North Eastern China territories and is one of Caterpillar’s top five dealers globally (by sales value).
Slater & Gordon Limited (SGH) announced that it has agreed to acquire the business of prominent United Kingdom law firm Russell Jones & Walker (RJW) for £53.8 million (approximately $AUD80 million), subject to the grant of an Alternative Business Structures licence by the UK Solicitors Regulation Authority. The agreement to acquire the business comes after more than 12 months of extensive due diligence. All of RJW’s principals will continue to work in the new business and are becoming shareholders in Slater & Gordon. The history of RJW is similar to that of Slater & Gordon. Established in the 1920s to gain compensation for steelworkers injured in the dreadful working conditions of the time, RJW has grown substantially and now has approximately 425 staff across 10 locations. About 60% of its revenue is in personal injury litigation. It also has a strong employment law practice and a growing practice in family law. The main RJW offices are in London, Manchester, Sheffield and Birmingham.
The acquisition includes RJW’s Claims Direct brand. Claims Direct is one of the UK’s largest and best known claims management brands. It operates as essentially a marketing co-operative for a number of law firms. The legal enquiries derived from Claims Direct marketing are allocated to the members of the co-operative. Claims management companies are currently a prominent feature of the UK legal landscape.
“The UK market is inherently attractive to us because of its size and its jurisdictional similarities to Australia which the recent changes bring even closer into line,” Slater & Gordon Managing Director Andrew Grech said. “We have the huge advantage of having a five-year head start in operating in a listed environment and we can bring that experience to the UK through a kindred firm in RJW, which has the business structure and the people to exploit that advantage.” Slater & Gordon Ltd will incorporate a wholly owned subsidiary company in the UK, Slater & Gordon UK Ltd, to manage its operations there. RJW CEO Neil Kinsella will become CEO of Slater & Gordon’s UK business. All senior RJW management will continue in their current roles.
http://www.traderdealer.com.au/fundamentals/sgh
Slater & Gordon Limited (SGH) announced that it had agreed to acquire the Queensland conveyancing specialist firm Conveyancing Works for a consideration of approximately $5 million. The acquisition of Conveyancing Works, which has forecast full year revenue of approximately $8.0 million, will be a major step forward in Slater & Gordon’s strategy of developing its non-personal injury legal practices. Conveyancing Works currently has an estimated 14% market share of the domestic conveyancing services market in Queensland based on the number of transactions completed in 2011 and is the largest specialist firm operating in this area in Australia.
Slater & Gordon Managing Director, Andrew Grech said the company would use the acquisition as a base from which to develop a significant share of the domestic conveyancing market in Queensland, Victoria and New South Wales over the next few years and eventually nationally. “This announcement delivers on our commitment to more actively pursue a strategy of growth in the non-personal injury consumer legal services sector. “It also forms part of our longer-term strategy of expanding the range of legal services that we offer everyday Australians,” Mr Grech said.
Conveyancing Works developed its business model and practice management system to enable it to complete high volumes of transactions for clients efficiently. It is based in Brisbane and has nine offices in Queensland (at Cairns, Caloundra, Hervey Bay, Mackay, Maroochydore, Palm Beach, Rockhampton, Southport and Townsville), and more than 50 staff members, all of whom will be retained. Conveyancing Works Executive Chairman, Don Horsfall, said: “This is an amazing opportunity for our business, which started in 2000 with just two staff.” “We have grown our law firm based on a strong commitment to delivering efficient conveyancing services and supporting Queenslanders in their home acquisition goals”, Mr Horsfall said.
It is expected that the transaction will be completed on or about 25 November 2011. The transaction has been the subject of an extensive due diligence process, which has been substantially completed over the last twelve months. The Consideration includes shares being issued to the Vendors as well as deferred consideration (of $1.5 million) payable within 14 months of completion, conditional on certain post completion events and targets being achieved. The share component is subject to escrow periods totalling three years.
http://www.slatergordon.com.au/
http://www.traderdealer.com.au/fundamentals/sgh
Seven Group Holdings Limited (SVW) announced that it has reached an agreement with West Australian Newspapers Holdings Limited (WAN), to create Seven West Media (SWM). Seven West Media will be Australia’s largest diversified media business. The proposed transaction would result in a media company with a leading presence in broadcast television, radio, newspaper publishing, magazine publishing and online. Seven West Media will be formed by WAN acquiring 100% of SMG from SGH, for an Enterprise Value of approximately $4.1 billion (the Proposed Transaction). Upon implementation of the Proposed Transaction, SGH will hold a 29.6% stake in SWM and $250 million of SWM Convertible Preference Shares.
SGH Group Chief Executive Mr. Peter Gammell today welcomed the announcement. “A year ago we announced the merger of Seven Network and WesTrac Group to create Seven Group Holdings. This transaction to create SGH has delivered considerable shareholder value,” Mr. Gammell said. “Today represents a logical next step. As a result of the transaction, Seven Group Holdings will be the largest shareholder in Seven West Media which will comprise two iconic Australian media assets, namely: Seven Network and the West Australian.” The Executive Chairman of Seven Group Holdings, Mr. Kerry Stokes, said: “The media landscape is evolving rapidly. Today’s announcement provides a significant opportunity for shareholders to participate in this expanding sector.
Under the terms of the Proposed Transaction, SGH, which owns 45% of SMG, will initially buy out the interest of its joint venture partner, KKR, as well as the interests of management and mezzanine investors. WAN will subsequently acquire 100% of SMG from SGH, for an Enterprise Value of approximately $4.1 billion.
http://www.traderdealer.com.au/Fundamentals/svw
http://www.traderdealer.com.au/Fundamentals/wan
Slater & Gordon (SGH) will go ex dividend on 30/8/2010. The current dividend payment is 3 cents and it is 100% franked. The record date is 3/9/2010 and the dividend will be paid on 28/10/2010. Based on the full year payment the dividend yield is 3.5%.
*Current Yield: 2.1% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 19/8/2010. Current yield is based on the current dividend payment only.
Slater and Gordon (SGH) announced on the 28/6/2010 that they would be conducting a Share Purchase Plan to raise additional capital. The record date was the 25/6/2010 on which shareholders must own the share to participate in the SPP. The closing date is 30/7/2010. Shares will be issued on 13/8/2010 and begin trading on 16/8/2010. A maximum of $15,000 can be purchased by each shareholder at $1.40.
Discount : 9.1% Liquidity : Poor Profitability : Good Stability : Poor
* Note: Discount is based on the closing price on the 28 June 2010.
