Nov. 7 (Bloomberg) -- DTZ Holdings Plc, the unprofitable U.K. real-estate broker that put itself up for sale last month, closed down almost 87 percent in London after saying the shares have “minimal value” based on proposed bids for the company.
Trading volume was 136 times higher than the daily average over the last three months, according to data compiled by Bloomberg, as investors sold off their shares.
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.
DTZ said it would invite offers for the company on Oct. 19, two days after Saint George Participations SAS, the owner of 54 percent of DTZ shares, said it wouldn’t bid for the rest. SGP is backed by the property brokerage arm of BNP Paribas SA.
DTZ declined as much as 19.25 pence to 2 pence, and the closing price of almost 2.9 pence valued the broker at about 7.8 million pounds ($12.5 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.
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