American First Selling Unit to a British Firm

American First Corp. has reached an agreement in principle to sell San Diego-based First Affiliated Securities to a new company owned by Jonathan E.S. Bekhor, a member of the London Stock Exchange, First Affiliated said Monday. Terms of the deal were not released.

Financially troubled American First is selling First Affiliated as part of a restructuring program. The Oklahoma City-based financial services company is focusing on its core insurance businesses. American First, which acquired First Affiliated in 1982, owns two life insurance companies, a title company and a leasing company.

The proposed sale of First Affiliated to the owner of a British securities brokerage firm is a “very positive” move, according to First Securities President Kenneth Elsberry. Bekhor plans to retain the current management team and will not move First Affiliated’s headquarters from San Diego, according to Elsberry.

First Affiliated has about 120 employees in its San Diego office. About 25 other employees work at offices around the country. The securities brokerage firm reported a loss in 1985, but had been profitable in previous years, according to Elsberry, who declined to provide exact figures.

First Affiliated would represent “Bekhor’s first foothold in the U.S. securities market,” according to Elsberry. “In addition to the access we’ll have to (Bekhor’s) research on European firms, we’ll also have an affiliation with Bekhor’s investment banking.”

American First on Monday reported an $8-million net loss for the fourth quarter and a $7-million net loss for fiscal 1986. American First linked the losses and the First Affiliated sale to the Southwest’s depressed energy and real-estate businesses.