Belvoir Lettings ‘disappointed’ after merger knockback

Belvoir Lettings says it is “disappointed” with the response from The Property Franchise Group after it approached the firm over a possible merger.

Last month, Grantham-based Belvoir Lettings had an approach to merge with The Property Franchise Group (TPFG) rebuffed after the Bournemouth firm said any deal “would not be in the best interests of shareholders”.

The deal, which valued TPFG at £33.7m, “would be in the best long term interests of both companies and their respective shareholders” said Belvoir.

However, in reply, TPFG issued a statement saying: “The Board maintains its position that the Possible Merger Offer would not be in the best interests of TPFG’s shareholders.”

It added: “A further announcement will be made in due course outlining the reasons why the Board believes that the Possible Merger Offer would not be in the best interests of the company’s shareholders as a whole.”

In a statement to the London Stock Exchange this morning (1 November), Mike Goddard, chairman of Belvoir, said: “The Possible Merger Offer was proposed with the intention of treating both Belvoir and TPFG shareholders equally, save for the possibility of the latter being able to take some money off the table as part of this process.

“We understood this to be an important component for the TPFG shareholders prior to submitting our merger proposal to the TPFG board, however the proportion of cash can be reduced and the proportion of shares increased accordingly.

“We are disappointed with the TPFG board’s refusal to discuss the Possible Merger Offer and believe that the shareholders of both companies will recognise the potential benefits that the Enlarged Group ought to be able to generate in the medium term. We recognise that the TPFG board speaks for approximately 49.3 per cent. of TPFG’s shares but would hope as a matter of process that they will fully consider the merits of the Possible Merger Offer in the context of the TPFG shareholders as a whole.

“The Belvoir board remain very willing to have an open and constructive discussion with the TPFG board about the Possible Merger Offer.”