Slater & Gordon has agreed to be bought out by Sydney-based private equity firm Allegro Funds for $150 million, nearly 16 years after it became the world's first publicly listed law firm.
Slater & Gordon chairman James Gordon said on Friday that the consumer law firm's shares have very low liquidity and the all-cash offer "provides certainty of value for shareholders".
The offer also allows Slater & Gordon an opportunity to simplify its capital structure, which is currently dominated by offshore hedge funds, he said.
Slater & Gordon also announced it had swung $16.7 million in net profit after tax for the six months to December 31, after a $7.7m loss a year ago. Revenue rose 37 per cent to $110m.
It settled five class action lawsuits during the half, including those for customers of ANZ, CBA and Westpac, and achieved a High Court ruling on behalf of West Australians affected by the 2014 Perth Hills bushfire.
The offer is contingent on Allegro acquiring at least 50.1 per cent of Slater & Gordon shares.
Slater & Gordon shares closed up 6.2 per cent at 60c.
