Work Group in advanced talks to buy law firm Gordon Dadds

AIM-listed Work Group confirmed on Tuesday that it is in advanced talks with London-based law firm Gordon Dadds regarding a possible offer that would constitute a reverse takeover.

The company said it plans to raise up to £20m via an accelerated bookbuild placing of up to 457.2m shares at 4.375p each to institutional investors. The net proceeds are expected to be up to £18m, which will be used to repay borrowings of Gordon Dadds, to fund further acquisitions and for the working capital requirements of the enlarged group.

"Whilst the negotiations are very advanced at this stage, there can be no certainty that any offer will be made nor as to the final terms of any offer," Work Group said.

The offer values Gordon Dadds at £18.75m and each Gordon Dadds ordinary share at 155p. The valuation would leave the share capital of the enlarged Work Group at a ratio of 15:1 between current Gordon Dadds shareholders and Work Group shareholders.