Belvoir has announced that it has made an approach to The Property Franchise Group regarding a possible merger.
In a statement to the City Belvoir said its directors considered that the combination of TPFG and Belvoir “would be in the best long term interests of both companies and their respective shareholders.”
The process has been ongoing for some time as the announcement continues: “The strong preference of Belvoir is to implement the Possible Merger Offer on a recommended basis. The TPFG board has however informed Belvoir that that they do not believe this to be an opportune time to entertain offers or a merger for TPFG.”
The property Franchise Group consists of high street agency brands Martin & Co, C J Hole, Ellis & Co, Parkers and Whitegates; it also includes the national online agency EweMove.
This morning’s statement to the City continues: “The Belvoir board are disappointed that the TPFG board have declined to enter into a dialogue, not least because they had previously indicated a willingness to engage with Belvoir in this regard and also given the strategic rationale for the Possible Merger Offer.
“The Belvoir board strongly believe that now is exactly the time for such industry consolidation and that a more broadly based multi franchise group will be better positioned to leverage the opportunities in the sector and that the shareholders of the respective companies are looking for such leadership. The Belvoir board believes that the franchise-facing operations of Belvoir and TPFG will remain largely unchanged.”
The note also suggests a board of directors for the merged body, with Mike Goddard, current chairman of Belvoir, serving as chairman of the ‘Enlarged Group’, and Richard Martin, current chairman of TPFG, offered the role of non-executive Deputy Chairman of the Enlarged Group. Dorian Gonsalves, current CEO of Belvoir, would be CEO of the merged company.
Belvoir was founded in 1995 and listed on the London stock exchange in 2012; it operates a nationwide property franchise group with 300 offices across four brands offering a range of specialist services in property rental, property management, residential lettings, buy to let, property sales and property-related financial services.
It reported revenue of £9.9 million in 2016.
TPFG operates a property franchise business managing 50,000 properties through over 370 offices and six franchise brands. It reported revenue of £8.3 millionfor the year ended 31 December 2016.