DWF Group Shares Skyrocket by Over 30% on Takeover Announcement

Shares of the UK-based legal services company DWF Group PLC (GB:DWF) witnessed an increase as the company announced its ongoing discussions with Inflexion Private Equity Partners regarding a potential acquisition for a sum of £342 million. On Monday, shares of DWF experienced their largest intraday gain, rising by 33%.

DWF Group is a services company, providing a wide range of legal and business services across multiple sectors. The company has operations in around 30 locations worldwide.

The Possible Deal

Upon completion, DWF’s shareholders will receive 100p per share, which comprises a cash component of 97p per share along with a conditional special dividend of 3p per share. The company is affirmative that if the offer is made as per the current terms, it would recommend it to DWF shareholders.

Inflexion must provide confirmation by August 7 regarding its intention to make an offer for DWF. It is possible to extend this deadline with the consent of the takeover panel.

DWF is set to release its Q4 and full-year earnings for 2023 on July 20. The company has already provided a positive update on its results, with an 8% increase in revenue. The company expects its revenues to be around £380 million in 2023.

The discussions surrounding a potential sale have already had a favorable effect on the company’s share price. Analysts are also upbeat about the upcoming earnings and expect them to further drive the share price.

21 days ago, James Bayliss from Berenberg Bank confirmed his Buy rating on the stock, predicting a huge upside of 85% in the share price.

What is the Share Price Forecast for DWF Group?

According to TipRanks’ analyst consensus, DWF stock has a Moderate Buy rating backed by two Buy and one Sell recommendations.

The average price forecast is 106.67p, which is 23.75% higher than the current price.

Disclosure