LONDON (Alliance News) - Belvoir Lettings PLC on Tuesday said it has entered into a conditional agreement to buy independent UK lettings franchise Northwood GB Ltd for GBP22.0 million, which it said it would partly fund through a share placing.
Belvoir said, on completion of the deal, it would be the largest property franchise group in the UK.
The GBP22.0 million consideration comprises of an initial consideration of up to GBP11.5 million and the remaining balance as a two year earn out, the company said. The acquisition is to be partly funded through a placing of shares at 112 pence per share, to raise up to GBP2.5 million, Belvoir said.
Shares in Belvoir closed up 0.9% at 118.00p on Friday, when the company last traded.
Belvoir said the placing is to be conducted through an accelerated bookbuild process, launched on Tuesday morning, with Cantor Fitzgerald Europe acting as the sole bookrunner.
The final number of placing shares will be agreed by Cantor and Belvoir at the close of the bookbuild.
Belvoir said "certain directors and key management" of Belvoir intend to subscribe for around GBP70,000 shares in the placing, and, in addition, Executive Chairman and Chief Executive Mike Goddard intends to make GBP650,000 of existing shares available for sale at the placing price, subject to institutional demand.
Belvoir said it continues to trade positively, with managed serveces fees up 36% in the first quarter compared to the same period a year earlier. Trading is currently in line with Belvoir's expectations, the company said.
"This acquisition, which is in line with our multi-brand strategy to grow both organically and by acquisitions, will substantially increase the group's presence throughout the UK. We look forward to developing Northwood further as part of the Belvoir as we continue to grow and also look for further acquisition opportunities," Goddard said.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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