DTZ Holdings Plummets After Saying Shares Have Minimal Value Based on Bids
DTZ Holdings Plc (DTZ), the unprofitable U.K. real-estate broker that put itself up for sale last month, fell as much as 91 percent in London after saying the shares have “minimal value” based on proposed bids for the company.
Based on the offers and DTZ’s debt, “there is minimal value, if any, that may be attributed to the ordinary shares of DTZ, although the exact value is uncertain,” the London-based company said in a statement today.
On Oct. 19, DTZ said it would invite offers for the company. That was two days after Saint George Participations SAS, the company that owns 54 percent of the stock, said it wouldn’t bid for the rest of the shares. SGP is backed by the property brokerage arm of Paris-based BNP Paribas SA.
DTZ declined as much as 19.25 pence to 2 pence and was trading at 3.25 pence in London today as of 11:44 a.m., cutting the company’s market value to about 9 million pounds ($14.5 million). The shares peaked at 835 pence in December 2006.
On July 7, the company said its net debt was 64 million pounds at the end of its fiscal year on April 30.
The sale of the holding company has attracted “considerable interest,” DTZ said today. Chief Executive Officer John Forrester ruled out a management buyout on Oct. 17.
Oriel Securities Ltd. is advising DTZ.
To contact the reporter on this story: Neil Callanan in London at email@example.com.