The boards of Belvoir Group PLC (AIM:BLV) and The Property Franchise Group (AIM:TPFG) have agreed a merger that would create a lettings and estate agency group with a combined market cap of just over £214 million based on yesterday’s closing prices.
Belvoir shareholders will receive 0.806377 new TPFG shares for each share they own, valuing the shares at 277.4p apiece, compared to 256.5p at the last close.
The merger would see Belvoir shareholders hold roughly 48.25% of the enlarged group’s shares and TPFG shareholders around 51.75%.
The deal, which requires approval from both sets of shareholders, is supported by Belvoir shareholders representing 31.2% of the shares and TPFG shareholders representing 56.7%, both including directors.
Belvoir chairman Jon Di-Stefano said: "The merger of Belvoir and TPFG 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.”
He said the two businesses have complementary geographic footprints, which would provide “scale and diversification across a variety of high street and hybrid brands combined with high levels of recurring revenue”.
The combined revenue of the two companies in the 2022 financial year was just above £60 million, of which about 41% was recurring, with underlying profit (EBITDA) of around £22.5 million.
TPFG chief executive Gareth Samples and TPFG finance chief David Raggett will head the combined board alongside Belvoir executive director Michelle Brook, with TPFG’s Paul Latham as the combined group's chair.