The Property Franchise Group PLC (AIM:TPFG) made an offer to acquire Hunters Property Plc (AIM:HUNT) on December 4, 2020. The Property Franchise Group PLC entered into an definitive agreement to acquire Hunters Property Plc (AIM:HUNT) for £24 million from the group of shareholders on January 28, 2021. Shareholders are a group of Directors namely, Kevin Hollinrake holding 13.28%, Ed Jones holding 12.27%, Glynis Frew holding 5.84%, Harry Hill holding 2.08% and Dean Fielding holding 0.7%. Apart from Directors Nigel Wray, John Waterhouse and Martin Robinson hold 18.16%, 12.6% and 6,22% shares of Hunters. The consideration is paid in combination of cash and shares. The Property Franchise Group PLC will pay £0.432 in cash and £0.1655 per share in The Property Franchise Group PLC. The deal has been financed through a loan facility from Barclays Bank PLC, the proceeds of which may be used towards, inter alia, financing the consideration paid or payable under the terms of the Acquisition and existing cash resources of The Property Franchise Group. The Property Franchise Group has received irrevocable undertakings from Nigel Wray, John Waterhouse and Martin Robinson to vote in favor of the Scheme at the Hunters Property Plc Court Meeting and in favor of the Hunters Property Plc Special Resolution to be proposed at the Hunters Property Plc General Meeting, in respect of a total of 12.13 million Hunters Property Plc Shares, representing approximately 37% stake. of the ordinary share capital of Hunters in issue on the Latest Practicable Date. The approach is preliminary, and the terms remain subject to ongoing discussion and to due diligence by both Hunters and TPFG. In accordance with Rule 2.6(a) of the Code, TPFG is required, by not later than 5.00 p.m. on January 1, 2021, to either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for the Company, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. On December 29, 2020, the Panel on Takeovers and Mergers granted, an extension to the deadline for TPFG. Accordingly, TPFG must, by no later than 5.00 p.m. on January 22, 2021, either announce a firm intention to make an offer for Hunters in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for the Company, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. On January 22, 2021, the deadline for making an offer has been extended to January 29, 2021. Prior to the Scheme becoming Effective, Hunters Property Plc will make an application to request the London Stock Exchange to cancel the trading of the Hunters Property Plc Shares on AIM, to take effect shortly after the Effective Date. On the Effective Date, Hunters Property Plc will become a wholly-owned subsidiary of The Property Franchise Group and share certificates in respect of Hunters Property Plc Shares will cease to be valid and should be destroyed. In addition, entitlements to Hunters Property Plc Shares held within the CREST system will be cancelled on the Effective Date.

The transaction is subjected to approval from shareholders of The Property Franchise Group PLC which is expected to be held on March 5, 2021. The transaction is subjected to court approval. The transaction is subject to approval of Scheme by a majority in number of Hunters Shareholders no less than 75%. As on January 28, 2021, Board of Directors consider the offer to be fair and reasonable and they intend to recommend unanimously that Hunters Shareholders vote in favour of the Scheme. Board of Directors of The Property Franchise Group intend to recommend unanimously that TPFG Shareholders vote in favour of the scheme. On March 3, 2021, the shareholders of The Property Franchise Group approved the deal. On March 5, 2021, the shareholders of Hunters approved the deal. As of March 16, 2021, court approved the transaction. The Scheme is expected to become effective in March 2021, If the Scheme doesn't become effective by May 28, 2021, i.e. the Long stop date. The Property Franchise Group and Hunters may agree Upon the Scheme becoming Effective, it will be binding on all Scheme Shareholders, irrespective of whether or not they attended or voted at the Hunters Court Meeting or the Hunters General Meeting and the share certificates in respect of Scheme Shares will cease to be valid and entitlements to Scheme Shares held within the CREST system will be cancelled.


Andrew Emmott of SPARK Advisory Partners Limited and Dowgate Capital Limited acted as financial advisors to Hunters Property Plc. Max Hartley, Callum Davidson and Julian Morse of Cenkos Securities plc acted as financial advisor to The Property Franchise Group PLC. CMS Cameron McKenna Nabarro Olswang LLP acted as legal advisor to The Property Franchise Group PLC and Dwf Law Llp acted as legal advisor to Hunters Property Plc.