$4.25 Million Case : American First Wraps Up Sale of Brokerage Firm
American First Corp. said Wednesday that it has completed the previously announced sale of its San Diego subsidiary First Affiliated Securities to A. J. Bekhor & Co. of London for $4.25 million cash. FAS has 202 securities broker-dealer offices in 37 states.
In an interview Wednesday, Bekhor Chairman Jonathan Bekhor, 41, said there will be no immediate layoffs of FAS’ 120 San Diego employees, nor will the headquarters be moved. FAS’ gross commissions last year exceeded $50 million.
Based in Oklahoma City, AFC said it sold the money-losing brokerage in an effort to refocus its activities along the lines of its core life insurance business. AFC bought the brokerage from its founders in 1982.
A. J. Bekhor is the largest retail securities brokerage in the United Kingdom in terms of trading volume, Bekhor said. The two brokerages combined will have 250,000 active client accounts, he added. A. J. Bekhor’s purchase of FAS will make it easier for “UK investors to come into the U.S. and U.S. investors to come into Europe” in terms of making investments, Bekhor said.
Without being specific, AFC spokesman Cecil Carter said Wednesday that FAS “contributed” to American First’s 1986 net loss of $7 million on revenue of $108 million.
Despite FAS’ losses, Bekhor said he plans to expand FAS “considerably” in coming months but gave no specific growth targets. FAS President Kenneth Elsberry will remain as the firm’s chief executive, he said.
