Deal & News Story Prep

Question 1

Recent news story [1] (Labour’s Win - Employment Pledge)

Answer 1

Labour’s Win
- Labour wants to end zero-hour contracts and ensure workers have contracts reflecting their usual hours.
- They also want to give day-one rights to parental and sick leave and make it easier to challenge unfair dismissal.

Impact on law firms:
- Need to provide comprehensive advice to businesses on new day-one rights for sick and parental leave.
- This will involve drafting updated employment contracts and company policies to ensure compliance..

Question 2

Recent news story [2]
Attacks on Red Sea

Answer 2

Shipping costs skyrocketing:
- Attacks in the Red Sea have caused international shipping costs to skyrocket as businesses scramble to get goods shipped for the festive season earlier than usual.
- Due to the attacks, ships are having to go a slower route around Africa, making everything more expensive and slower.

Impact on law firms:
- Clients may need legal assistance to renegotiate shipping and supply contracts to account for increased costs and delays.

Question 3

What recent deal have you been reading about? [1]

Answer 3

Brief Overview of the Deal:
- Recently I have been following a significant corporate sector deal. Slaughter and May advised Shepherd Building Group on the sale of Portakabin to Antin Infrastructure Partners.

Key Rationale:
- Portakabin owns a fleet of over 100,000 modular units, leasing to over 4,000 customers across the UK and Europe.
- Antin, an experienced infrastructure investor will support the next stage of growth for Portakabin.
- Includes: Corporate, Construction, Financing, Pensions/Employment/Incentives, Tax, Technology, Environment, Real Estate, Competition, Financial Regulation teams.

Why it is interesting:
- Portakabin was founded in 1961 and is still headquartered in my hometown of Huntington, York.
- Growing up in Huntington, I have seen firsthand how much the company benefits our local economy, employing 750 in Huntington.
- This deal personally interests me, as this significant sale provides the opportunity for the company to continue to expand and provide even more jobs as a local employer.

Question 4

What recent deal have you been reading about? [2]

Answer 4

Brief Overview of the Deal:
Slaughter and May is advising Nationwide on its recommended all-cash acquisition of Virgin Money.

Key Rationale:
- The acquisition values the entire issued share capital of Virgin Money at approximately £2.9 billion - positioning itself as the UK’s second largest mortgage and savings entity.
- Nationwide’s decision to finance this acquisition entirely from its existing cash reserves is noteworthy. This approach highlights Nationwide’s strong liquidity position and its strategic decision to avoid diluting existing shareholders’ interests or incurring significant debt, which is a prudent financial move.

Why it is interesting:
- This deal is interesting as the acquisition will create the UK’s second-largest provider of mortgages and savings, which could significantly alter the competitive landscape. This will greatly enhance Nationwide’s ability to offer diversified products, improving its market position against both traditional banks and emerging fintech challengers.

Cash Reserve pros:
- No additional debt incurred. Preserves borrowing capacity

Cash Reserve Cons:
- Reduced future cash buffer.