UK

Foxtons Estate Agency Plans £500m Stock Market Flotation

27/08/2013 09:29 BST
PA
A Foxtons estate agency sign.

Foxtons could unveil plans to float on the stock market which could land the estate agency's management with a £100m payout.

The firm's stock market flotation could see the business valued at between £400m to £500m. Such a valuation would result in a £100m windfall for Foxtons' management, led by CEO Michael Brown, who own 20% of the firm.

A successful entry onto the stock market would mark a huge financial turnaround for the London estate agency, which wrestled with extensive debts in 2007 after the housing market crash. BC Partners bought the firm for £390m at the height of the housing boom in March 2007.

Foxtons' financial distress led to it being seized by its lenders Bank of America and Mizuho in 2010 after breaching its bank loan agreements. BC Partners kept a stake by injecting £50m into the business and regained control last year.

The estate agency has seen trading steadily improve, after posting underlying earnings of £37.9m in the year to 31 December.