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Field Fisher Waterhouse advises AIM-quoted Sovereign Reversions on takeover

28 July 2010

Field Fisher Waterhouse LLP has advised on the acquisition of AIM-quoted Sovereign Reversions plc by Grainger Equity Release Limited, a subsidiary of Grainger plc, a property company listed on the Main Market. The acquisition values Sovereign at £35 million.

The acquisition allows Sovereign shareholders to realise their interests at a significant premium to their market value prior to the offer. The acquisition will also result in a strengthening of Grainger’s position as a leading equity release provider in the UK, a sector which is expected to become a mass market product as increasing numbers of retirees seek to supplement their pension savings by releasing capital from their homes.

Field Fisher Waterhouse corporate partners Dominic Gurney-Champion and George Cotter led on the matter, assisted by solicitor Edward Westhead.

The Sovereign transaction is the latest deal in a successful first half of 2010 for the firm’s Equity Capital Markets group. Since the beginning of the year the team has completed 11 transactions with a combined value of over £260 million. Highlights have included acting on the flotation of Kea Petroleum plc, the first AIM IPO of 2010, and on a secondary fundraising for Gulf Keystone Petroleum Limited which raised US$165 million, making it one of the largest AIM fundraisings of the year.

Dominic Gurney-Champion said: “We have seen encouraging signs in the market in the first six months of 2010. As well as continuing work on secondary fundraisings and takeovers we are seeing an increasing stream of IPO-related activity.”

Sovereign was also advised by Charles Stanley Securities and Fairfax I.S. PLC. Grainger was advised by J. P. Morgan Cazenove, Freshfields and Dickinson Dees.

For further press information please contact:
Louise Eckersley, PR Manager, Field Fisher Waterhouse LLP on +44 (0)20 7861 41