Belvoir boss set to lose job in TPFG merger

The chief executive and chief financial officer of Belvoir will lose their jobs if the brand’s merger with The Property Franchise Group (TPFG) goes ahead.

TPFG and Belvoir announced yesterday that their boards have approved a merger, subject to shareholder backing.

The merger is expected to complete in the first quarter of this year.

If approved, the update said Dorian Gonsalves, chief executive of Belvoir, and chief financial officer Louis George, will step down from their roles and board positions but will remain with the merged business for 12 months following completion.

As part of the deal, TPFG would takeover the share capital of Belvoir.

The deal values each Belvoir share at approximately 277.4p, comprising an equity value of Belvoir's entire issued ordinary share capital of approximately £103.5 m and TPFG's entire issued ordinary share capital at £111m.

Upon completion of the merger, Belvoir Shareholders will hold approximately 48.25% and TPFG shareholders will hold approximately 51.75% of the enlarged issued share capital of TPFG.

It is proposed that the combined group board will comprise of three executive directors and four non-executive directors, excluding the chairman.

Belvoir will contribute one executive director (Michelle Brook) and two non-executive directors (Jon Di-Stefano and Paul George). TPFG will contribute the chair (Paul Latham) as well as two executive directors (Gareth Samples, as the combined group's chief executive officer and David Raggett, as the combined group's chief financial officer) and two non-executive directors (Dean Fielding and Claire Noyce).

Richard Martin, founder of TPFG, will also step down from the TPFG Board and take on a new role as lifetime president.

The combined group would have a market capitalisation of approximately £214.m and would mean both brands can combine their expertise and resources.

Di-Stefano, non-executive chairman of Belvoir, said: "The merger of Belvoir and TPFG combines two businesses with much in common, each supporting a network of entrepreneurial franchises, and will create one of the UK's largest multi-brand lettings and estate agency groups combined with a growing financial services business.  

“With their complementary geographic footprints providing both scale and diversification across a variety of high street and hybrid brands combined with high levels of recurring revenue, we feel sure that the Combined Group will provide a robust platform from which to grow."