DTZ Holdings Plc (DTZ), the unprofitable U.K. real-estate broker controlled by a French family-owned company, put itself up for sale after attracting potential bidders.
DTZ “will implement a formal sale process of the company, which it will conduct alongside consideration of the other strategic options,” the London-based company said in a statement today.
Saint George Participations SAS, which owns 54 percent of DTZ and is backed by the property brokerage arm of Paris-based BNP Paribas SA, said two days ago it won’t bid for the shares it doesn’t own. DTZ is cutting staff costs and other expenses after reporting losses for the past four years. It said on Oct. 17 that SGP and Royal Bank of Scotland Plc are providing a loan of as much as 10 million pounds, replacing a mezzanine facility.
DTZ didn’t say which companies have expressed an interest in making an offer. Oriel Securities Ltd. is advising DTZ and potential purchasers should contact the firm “without delay,” DTZ said.
Chief Executive Officer John Forrester ruled out a management buyout in a telephone interview on Oct. 17. DTZ is focusing on finding strategic options to ensure the long-term growth of the business, addresses the company’s capital structure and provide funds for future investment, he said.
DTZ fell 3.3 percent in London, dropping the company’s market value to about 59.5 million pounds ($94 million), their lowest closing price since December 2008. DTZ’s shares have dropped about 19 percent since SGP said it wouldn’t make a bid.