Sydney real estate operator John McGrath is in talks to sell his listed agency to global property giant Knight Frank and Bayleys.
Under the deal, McGrath shareholders will have the option to receive 60¢ cash per McGrath share, or an unlisted scrip alternative, or a combination of both. If successful, it will mark the end of McGrath being a listed ASX company.
John McGrath will stay on as chief executive of the division, and will take up the offer of unlisted shares for his majority stake.Credit: Flavio Brancaleone
If the deal goes through, McGrath, dubbed “Mr Sydney” real estate, will stay on as chief executive of the division, and will take up the offer of unlisted shares for his majority stake. Overall, the board of McGrath controls 48.1 per cent of the issued capital and intends to accept the offer.
In a statement to the ASX, McGrath said he was “delighted to have received this offer from a consortium comprising a leading global property firm in Knight Frank, which has a strong residential real estate offering throughout the world, and leading New Zealand full-service real estate agency in Bayleys”.
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“Together we share common values and cultures and see the potential partnership with McGrath as a positive development for our industry, and for McGrath agents and team members, our franchise partners and customers, who will benefit from the consortium’s global networks, access to high net worth clients and real estate expertise in support of our vision and growth plans.”
McGrath was founded in Paddington in 1988 and listed on the ASX in 2015 amid much fanfare at $2.10 a share but has never traded above that price. It has a market value of $74.8 million and its last trade price was 47¢.
The business comprises a franchise arm, company-owned operations, project marketing and a mortgage broking business, Oxygen Home Loans.
More to come
Source Agencies
