A major shareholder in Foxtons is preparing to list its shares in London as it looks to make further investments in target companies, potentially putting its growing interest in the UK market under the spotlight.
Canadian investment company Aimia has applied for its shares to be admitted to London’s AIM market, with trading expected to begin on or around 9 September under the ticker AII.
The move is particularly noteworthy following the disclosure that Aimia has built a significant stake in Foxtons Group, giving the investment company a meaningful position in one of London’s best-known estate agency businesses.
Aimia’s Executive Chairman Rhys Summerton says the proposed London quotation forms part of its strategy to increase shareholder value and could make it easier for the group to pursue further investments.
UK INVESTMENT AMBITIONS
Aimia is already listed on the Toronto Stock Exchange and Johannesburg Stock Exchange. Announcing the proposed AIM admission on 18 August, the company explicitly identified future investment activity as one of the reasons for establishing a London quotation.
Summerton says: “Consistent with our strategy and focus of enhancing shareholder value, we have explored becoming AIM quoted and believe that it will enhance our liquidity, attract new investors, and facilitate making investments in target companies.
“We look forward to becoming AIM quoted.”
The statement does not identify Foxtons as a potential target for further investment and there is no indication from Aimia that it intends to make an offer for the estate agency group.
However, the timing means its intentions towards its UK investments are likely to attract attention.
FOXTONS POSITION
Aimia has disclosed a 6.9% interest in Foxtons, comprising just over 20 million shares, making its position substantial enough to give it a meaningful voice as a shareholder.
Foxtons has itself increasingly pursued growth through acquisitions, particularly in lettings, as it seeks to increase the proportion of recurring revenues generated by the business.
The agency has acquired a succession of lettings portfolios and businesses in recent years as part of its strategy to build scale within London.
Aimia’s investment could simply reflect a belief in that strategy and the potential for further shareholder returns.
However, its decision to establish a London quotation while explicitly highlighting its ambition to facilitate investment in target companies creates another possibility: that Aimia could become a more active participant in the UK market.
That could range from increasing existing investments to supporting further consolidation or seeking greater influence over the strategy of businesses in which it holds significant stakes.
ONE TO WATCH
There is currently no evidence that Aimia intends to pursue a takeover of Foxtons or seek control of the company.
But its arrival as a significant Foxtons shareholder comes at an interesting point in the evolution of the estate agency group and the wider sector.
One City insider told Property Soup: “Consolidation remains a major feature of UK estate agency and lettings, with recurring property management income continuing to attract investment from both strategic buyers and private capital.
“For now, Aimia’s Foxtons investment and proposed AIM quotation are separate disclosed developments.
“But with the investment company openly stating that a London listing should make it easier to invest in target businesses, what it does next with its Foxtons position will be worth watching closely.”
