Foxtons Plc (LSE:FOXT) edged higher after reports at the weekend that it had asked adviser Rothschild to find a buyer after pressure from activist investors.
The London-based estate agent has been told to put itself up for sale by Canadian group Converium Capital and UK investor Milkwood, both of which own around 5% of the group.
According to the Sunday Times, Milkwood boss Rhys Sommerton believes a sale is the only way to “extract fair value” for the business.
Converium Capital called for a sale in 2022, noting at that time shareholders had lost almost 90% of their money or £650 million since it floated in 2013.
Shares have recovered a little since then but fewer London house sales have meant it has leant heavily on its booming lettings business to stay profitable in recent years.
Foxtons chief executive Guy Gittins embarked on a turnaround plan to improve its fortunes but pre-tax profits fell 34% to £7.9 million in the year to December 2023 after substantial one-off charges.
Shares rose 1.5% to 52.8p.