Banks win control of Alexander Hall and Foxtons
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Alexander Hall and Foxtons’ parent company private equity firm BC Partners has agreed a restructuring deal with bank backers.
According to the Financial Times, the deal will see BC Partners halve its debts in return for giving Bank of America and Mizuho together the majority stake in Foxtons and Alexander Hall.
In a statement, Foxtons confirms that, subject to FSA approval, it has agreed a consensual capital restructure with its existing banks and shareholders.
Foxtons was acquired by BC Partners along with brokerage Alexander Hall in 2007 for a reported £360m.
A spokesman for BC Partners says that following the restructure the private equity firm will still be the largest single shareholder in the estate agency and brokerage, and the deal entitles BC Partners to certain corporate governance rights.
Foxtons chief executive Michael Brown says: “Despite the credit crunch and recession, the strength of Foxtons brand and business model, and the quality of our people, mean we have continued trading profitably.
“Our strengths and future potential lie behind the capital reorganisation, and we are delighted we will continue to have the support of BC Partners and our banks going forward. We continue to face the future with considerable confidence.”
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Readers' comments (1)
Anonymous | 11 Jan 2010 5:49 pm
and the rich get richer..... Stuff all the smaller firms hey, Why don't we all have a great whip round and buy out all the smaller brokers to establish 10 giants of the industry, problem solved.The brokers get some money in their pockets and the monopolies continue.... Maybe 10 Downing Street can bail out small brokerages... of course not ..
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