Franchise giants in merger deal see shares dip

The Property Franchise Group and Belvoir both experienced a drop in their share price after a merger deal is announced.

Both companies involved in a merger of franchise giants, The Property Franchise Group (TPFG) and Belvoir Group, have seen a dip in their shares.

The Stock Market reaction to the news was subdued with Belvoir experiencing a 4.3% fall to 245p, and TPFG down 6% to 310p at the close of trading yesterday.

The firms may be disappointed that there hasn’t been a more positive response, but analysts warn that deals like the TPFG/Belvoir one with two listed companies, are not always greeted with excitement.


There may be some caution based on the view that TPFG is the larger of the two partners and although it is being called a merger, it could be more like a takeover.

The fact that Belvoir Group’s CEO Dorian Gonsalves is set to leave the company under the terms of the merger, may add weight to that view.

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.


The Belvoir brand will be added to the other seven brands which make up The Property Franchise Group: Martin & Co, Ewemove, CJ Hole, Ellis & Co, Hunters, Parkers and Whitegates.

Belvoir Group’s lettings and acquisitions rescued its figures for the first half last year, with a jump of 10% in profits to almost £4.4 million.

TPFG increased group revenue to £13.2 million in the first half of the year with profit before tax increasing 11% to £4.2 million, its half year results revealed last year.

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