12/06/2014 - 15:14

Shine buys Perth law firm

12/06/2014 - 15:14

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ASX-listed law firm Shine Corporate has expanded its presence in Western Australia with the acquisition of a local personal injury litigator.

ASX-listed law firm Shine Corporate has expanded its presence in Western Australia with the acquisition of a local personal injury litigator.

Shine said it had purchased South Perth-based Stephen Browne Personal Injury Lawyers as part of the company’s strategy for geographical diversification.

Making the announcement, Shine said it had also bought Queensland-based Emanate Legal and that the two acquisitions would cost a combined $27 million with a further $8.5 million in potential incentive fees. Shine will also issue $3.5 million worth of shares between the two vendors.

Stephen Browne Personal Injury Lawyers is headed by partners Stephen Browne and Allon Klein, as well as three senior paralegals.

Shine was established in 1976 and has more than 600 employees in 30 offices around Australia, the large majority of those in Queensland.

Shine has one office in WA, which is based in Northbridge and headed by branch manager Jennifer Craig.

The company said it would fund the acquisitions by raising $29.4 million through a fully underwritten one-for-10 renounceable entitlement offer at $1.90 per share.

The offer has been fully underwritten by Morgans Corporate.

Shine said it expected to report a 20 per cent increase in earnings before interest, tax, depreciation and amortisation for the financial year ending June 2014.

That is at the lower end of the company’s previous guidance of $34 million to $37 million.

It said improved productivity and focus on cost efficiencies had been offset by increased marketing costs and lower than expected resolution outcomes.

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