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Freshfields, Allen & Overy lay foundations for McCarthy & Stone’s £1bn flotation

Magic circle firms Allen & Overy and Freshfields Bruckhaus Deringer have taken lead roles on retirement homebuilder McCarthy & Stone’s plans to float on the London stock exchange.

An Allen & Overy team led by corporate partner Richard Browne with support from equity capital markets partner James Roe and US securities partner Adam Wells is advising McCarthy & Stone, which wants to return to the stock market almost a decade after it was taken private.

McCarthy & Stone wants to sell at least a quarter of its business to raise £70m for land business, which would value the company at about £1bn.

Underwriters Deutsche Bank AG, Goldman Sachs and Jefferies International are being advised by Freshfields, with partner Mark Austin leading a team.

McCarthy & Stone chief executive Clive Fenton said: ‘There is a structural under-supply of specialist retirement housing in the UK and McCarthy & Stone has the expertise, track record and financial strength to address this need.’

‘Listing on the London Stock Exchange will provide the ideal foundation for the Group to move to the next stage of its development and the Board and I will continue to work hard to deliver on our ambitious growth plans,’ he added.

For Allen & Overy, the appointment is the latest in a string of IPO mandates for the firm which last month picked up new client Ibstock, advising on the brick maker’s plans £1bn listing. Allen & Overy as well as Freshfields also acted on the London stock exchange’s biggest float this year, of payments company Worldpay.