Gateley partners see £6.4m windfall from share sale

PARTNERS at Birmingham-based law firm Gateley are £6.4m better off after selling shares in the legal business.

An update to the London Stock Exchange reveals that the various former partners sold an aggregate 5,761,971 ordinary shares in the business, which represents 5.4% of the current issued share capital.

The transaction price was £1.11 per sale share and the firm said there had been a strong demand from new institutional shareholders, as well as new and existing employees.

The sale was handled by the company’s broker, Cantor Fitzgerald Europe.

On the company’s admission to the Alternative Investment Market (AIM) last year, the former partners of the LLP held 73,684,222 ordinary shares in aggregate, equivalent to 70% of the share capital.

The various partners voluntarily entered into five-year lock-in agreements with the company which permitted them to dispose up to 10% of their interest in ordinary shares in any 12-month period after the first anniversary of admission to AIM.

Nigel Payne, chairman of Gateley, said: “I’m delighted to welcome new institutional shareholders on to the register and am equally pleased with internal demand from employees recognising the evolution and significant opportunities available to the business.”

The statement reveals chief executive Mike Ward and COO Peter Davies, together with others, sold 328,900 and 300,000 ordinary shares respectively, while finance director Neil Smith, together with others purchased 25,298 ordinary shares.

Following the transaction, Mr Ward now has 2,960,104 ordinary shares (2.77%) and Mr Davies 2,989,004 (2.80%). Mr Smith now has a 0.47% stake in the business.

Also named in the director dealings are: Brendan McGeever, Paul Hayward, Roderick Waldie, Callum Nuttall, Katie Chester and George Parker-Fuller.

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