Rival sets sights on Kevin Hollinrake's property firm

Kevin Hollinrake (front, centre) and the board of directors at Hunters Property

York-based Hunters confirmed it has been approached over a potential acquisition offer from larger rival, The Property Franchise Group (TPFG).

Mr Hollinrake, who founded Hunters in 1992, owns a 13.28 per cent stake in the company.

Hunters had a market capitalisation of just under £20m before the offer was announced.

Its share price shot up following the announcement and closed the day up 20 per cent at 70p. This gives the group a market capitalisation of £23m.

The estate agency group said the approach is preliminary and there can be no certainty an offer will be made.

The firm said in a statement to the London Stock Exchange: “Hunters Property notes the recent media speculation and confirms that it has received a preliminary approach from The Property Franchise Group regarding a possible offer for the entire issued and to be issued share capital of Hunters.

“The approach is preliminary, and the terms remain subject to ongoing discussion and to due diligence by both Hunters and TPFG.

“Accordingly, there can be no certainty that an offer will be made nor as to the terms of any offer, if made. A further announcement will be made when appropriate.”

According to stock exchange rules, TPFG is required to either announce a firm intention to make an offer for Hunters or announce that it does not intend to make an offer by 5pm on January 1. This deadline can be extended with the consent of the Panel on Takeovers and Mergers.

TPFG said it was in “early contemplation” of a possible offer for Hunters in line with its acquisition strategy.

Hunters’ biggest investor is Nigel Wray, the former chairman of Saracens rugby club, who has a 17.51 per cent in the company.

Over two thirds of the company’s shares are owned by private investors.

Glynis Frew, chief executive of Hunters, told Sky News: “As a leading national estate agency group with significant growth ambitions, it is routine for Hunters to consider new opportunities on an ongoing basis, any number of which may or may not come to fruition.”