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Estate agency deal frenzy grows with bid approach for Hunters

The Property Franchise Group has approached the group chaired by Tory MP Kevin Hollinrake about a deal, Sky News learns.

By Mark Kleinman, City editor

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Thursday 3 December 2020 20:29, UK

View of a line of estate agents' property boards outside residential properties in York. 7/11/2007
Image: Hunters was founded in 1992
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The takeover frenzy gripping Britain's estate agency sector is set to deepen on Friday when Hunters Property discloses that it has had a bid approach from a listed rival.

Sky News has learnt that Hunters - which is chaired by the prominent backbench Conservative MP Kevin Hollinrake - is in early-stage talks with The Property Franchise Group (TPFG) about a deal.

The approach comes days after the latest development in another takeover battle in the estate agency industry, with Countrywide the focal point of rival proposals from Connells and Alchemy Partners, the private equity firm.

(left to right) Kevin Hollinrake MP, Peter Lawrence and Baroness Hamwee holding a copy of Claudia's Law, as the father of missing chef Claudia Lawrence has spoken of his "delight" as new laws to help the families of missing people cleared Parliament.
Image: Hunters is chaired by the prominent backbench Conservative MP Kevin Hollinrake

If a deal between TPFG and Hunters was to be completed, it would fit with the former's strategy of acquiring large franchised agency brands.

TPFG's portfolio includes chains such as Ellis & Co, EweMove, Martin & Co and Parkers.

In market capitalisation terms, TPFG is more than double the size of Hunters, which is worth just under £20m.

Further details of TPFG's proposed bid, including an offer price, were unclear on Thursday evening.

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City sources said both companies were likely to confirm the talks in separate stock exchange announcements on Friday.

Hunters, which was founded in 1992 by Mr Hollinrake, has more than 200 branches across the country and is headquartered in York.

Countrywide estate agents
Image: Countrywide has been the subject of rival takeover proposals

Mr Hollinrake, who has been a vocal critic of Britain's banking industry in his capacity as the MP for Thirsk and Malton and a member of the Treasury Select Committee, became Hunters' chairman in 2015.

Glynis Frew, chief executive of Hunters, said in response to an enquiry from 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.

"In addition to this opportunity presented to us by The Property Franchise Group plc, we are soon to launch the SKIPA technology platform, which we believe is an industry disruptor that will further drive efficiency and improve customer service across the business."

TPFG declined to comment.