(Alliance News) - Belvoir Group PLC and Property Franchise Group PLC on Wednesday said they have agreed an all-share merger that will create a GBP214 million company managing 152,000 properties across the UK.
Belvoir share holders will receive 0.806377 of a new Property Franchise Group share for each Belvoir share they own. Based on Property Franchise Group's share price prior to the announcement, this values Belvoir's shares at 277.4 pence each and its total equity at GBP103.5 million. It values Property Franchise Group's equity at GBP111.00 million.
Early Wednesday morning in London, Belvoir shares were up 2.7% to 263.50 pence, giving the company a market capitalisation of GBP98.3 million. Property Franchise Group shares were down 1.2% to 340.00p for a GBP109.7 million market cap.
After the merger, current Belvoir shareholders will own 48.25% of the enlarged company and Property Franchise Group holders 51.75%.
Belvoir shareholders representing 31.2% of the total have agreed to the deal already, while 56.7% of Property Franchise Group holders also have.
The merger is expected to become effective in the first quarter.
Belvoir is based in Grantham, Lincolnshire, while Property Franchise Group operates from Bournemouth, Dorset. Together, they have 930 property franchise locations managing 152,000 tenanted properties across the UK. They also sell more than 28,000 properties combined per year.
Property Franchise Group Chief Executive Officer Gareth Samples and Chief Financial Officer David Raggett will be on the combined board, together with Belvoir Executive Director Michelle Brook. Property Franchise Group Chair Paul Latham will chair the new company.
"The merger of Belvoir and [Property Franchise Group] combines two businesses with much in common, each supporting a network of entrepreneurial franchises, and will create one of the UK's largest multi-brand lettings and estate agency groups combined with a growing financial services business," said Belvoir Chair Jon Di-Stefano.
By Tom Waite, Alliance News editor
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