Investors set to back merger of TPFG and Belvoir

Most shareholders in The Property Franchise Group support a proposed merger with rival firm Belvoir, it has been confirmed.

A joint statement to the London Exchange says that investors holding 56.7% of TPFG shares back the move.

A smaller proportion of Belvoir shareholders have so far given their backing, with 31.2% indicating their support.

Unanimous

The boards of both companies have given their unanimous approval to the merger, which would see TPFG shareholders hold around 51.75% of the combined group and Belvoir investors 48.25%.

It has also emerged that Belvoir shares are valued at 277p under the deal’s arrangements, with the current price around 260p. The combined company is valued at £214.4 million.

Both companies saw their shares dip in value after the announcement of the merger earlier this month, but have since recovered well, especially Belvoir.

Merged

Each firm has planned general meetings of shareholders next month to vote on the deal, which is scheduled to go through before the end of March.

The newly-merged group will boast more than 930 property franchise locations, managing approximately 152,000 tenanted properties across the UK and will be expected to sell more than 28,000 properties per year.

CEO to leave

Belvoir Group’s CEO Dorian Gonsalves (main picture, right) is set to leave the company under the terms of the merger.

Louise George, Belvoir’s CFO, is also set to go, although both senior executives will stay on for 12 months to help the two firms integrate.

Paul Latham, TPFG’s chairman will chair the combined group. The new company’s board will include Gareth Samples, TPFG’s CEO (main picture, left), David Raggett, TPFG’s CFO, and Michelle Brook, Belvoir executive director.

Richard Martin, founder of TPFG, will step down from the TPFG Board to take on a new role as lifetime president, and will continue to provide the combined group board with strategic advice.