By Belvoir Group and Property Franchise have recently revealed plans for an all-share merger, resulting in the formation of a new company with a valuation of £214.4 million ($272.5 million) and over 930 property franchise locations.
Valuation and Share Structure
Under the terms of the deal, Belvoir shareholders will receive 0.806377 of a Property Franchise share for each share they currently own. This offer values each share at 277.4 pence and sets the issued share capital at £103.5 million. The offer represents an 8.1% premium to Belvoir’s closing share price of 256.50 pence on Tuesday.
Ownership Distribution
Upon completion, which is anticipated in Q1 2024, Belvoir shareholders will hold a 48.25% stake in the combined group, while Property Franchise shareholders will own the remaining portion.
Business Operations
The consolidated company will oversee the management of approximately 152,000 tenanted properties throughout the U.K. Additionally, it is projected to facilitate the sale of more than 28,000 properties annually. In terms of financials, the companies jointly generated over £60 million in revenue in 2022. Adjusted earnings before interest, taxes, depreciation, and amortization were approximately £22.5 million.
Board Composition
Following the merger, the expanded company’s board will consist of key figures from both Belvoir and Property Franchise. Gareth Samples, Chief Executive of Property Franchise, David Raggett, Chief Financial Officer, and Paul Latham, Nonexecutive Chairman, are among those who will serve on the board. Jon Di-Stefano, Nonexecutive Chairman at Belvoir, and Michelle Brook, Executive Director at Belvoir, will also join the board.
Leadership Transition
Upon completion of the merger, Belvoir’s CEO Dorian Gonsalves and CFO Louise George will step down from their positions. However, they will remain with the combined company for a year to facilitate the integration process.
Positive Outlook
Belvoir’s Jon Di-Stefano expressed enthusiasm about the merger, stating that it combines two businesses with shared values and aims to create one of the largest multi-brand lettings and estate agency groups in the U.K., complemented by a growing financial services arm.
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