Belvoir merger with Martin & Co put to shareholders

Franchise lettings giant Belvoir is to attempt a merger between itself and The Property Franchise Group, owners of Martin & Co, after it today made an official offer to start direct discussions with both TPFG and Belvoir shareholders. Belvoir’s directors believe a merger between the two franchise networks would be in the “best long-term interest of both companies and their respective shareholders”. But Belvoir has gone public with the proposed merger only after the TPFG board rejected its overtures despite having previously shown a willingness to engage on the subject, Belvoir says. The time is ripe for industry consolidation, Belvoir CEO Dorian Gonsalves (pictured left) says, hinting at the difficulties that may be ahead for the lettings sector following the fees ban later this year, and “that a more broadly based multi franchise group will be better positioned to leverage the opportunities in the sector and that the shareholders of the respective companies are looking for such leadership”. The proposed merger would, through a mixture of cash and shares, see TPFG shareholder take a 34.6% stake in a new enlarged group and create a UK property franchise group with 683 outlets and 108,000 tenanted managed properties. TPFG shareholders would receive…

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