Shares in Foxtons (LSE:FOXT) jumped 5.9% to 42.88p after a report suggested shareholders are pushing for a sale of the business.
Milkwood Capital, an investment fund that specialises in investing in undervalued companies over the long term, owns about 4% and is the latest shareholder to demand a sale of the estate agency, according to The Times.
Rhys Summerton, who runs Milkwood Capital, said: “If you look back, in 2015 Foxtons (LSE:FOXT) was a £1 billion company. But the public markets are no longer valuing the good work the management has done recently and the only way to extract fair value is for the board to carry out a sale process.”
His statement follows pressure from the Canadian investor Converium Capital, which has been lobbying for Foxtons to carry out a strategic review over the past 18 months. Converium Capital owns around 6% of the firm.
Foxtons, which was founded in 1981, is one of Britain’s largest estate agents.