In a complex inter-company option agreement, high-profile network The Agency has combined all its connected shareholding dependencies into a singular structure, enabling it to capitalise on the initial success of the brand and position it for growth in the future.
Ausnet Real Estate Services Pty Ltd, subsidiary of The Agency Group Australia Ltd (ASX: AU1), has, along with a series of associated companies, acquired all the shares of Top Level Real Estate Pty Ltd, which has been trading until now as The Agency along the country’s east and west coasts.
The Agency Group Australia Ltd managing director Paul Niardone said that the transaction provides an “exciting opportunity” for The Agency, its staff and shareholders.
“It further cements our position as the fastest growing disruptive real estate group in the country,” the managing director said.
“Top Level, which has been trading as ‘The Agency’ on the east coast of Australia since launching in March this year, has established, with our support, a significant business in a short period of time, surpassing our recruitment and sales targets.”
Mr Niardone said that the integration of the two businesses makes “perfect sense”.
The revised structure, he said, will see the total number of shares to be issued reduced by 416 million shares, which will remove a significant overhang that would have existed under the original transaction structure.
“The removal of this overhang has been viewed positively in our discussions with corporate advisers and institutions,” Mr Niardone said.
“This is a good outcome for both existing Agency Group shareholders and Top Level shareholders and ensures both groups are aligned to achieving sustainable shareholder value.”
Top Level (The Agency) CEO Matt Lahood will become an executive director of The Agency Group.
Mr Lahood said that he is “thrilled” to be merging with The Agency Group Australia.
He said that “in only nine short months”, the Top Level business has grown to nine offices on the east coast trading as The Agency, with 75 agents and $480 million in sales.
“I am highly confident this agreement will provide us with great scale and will create great leverage with our clients nationally.”
In January 2017, The Agency Group Australia Ltd announced that it had entered into a license agreement and option to acquire Top Level at any time on or before 30 January 2018.
Under the license agreement, Top Level has had the right to use The Agency brand and intellectual property on Australia’s east coast.