Huntingdon-based housing association Luminus has begun talks over a proposed merger with another provider – following the departure of its chief executive and a damning government report.

Luminus is in discussions with the Homes and Communities Agency (HCA) and other stakeholders about the potential to merge with what it described as a “large registered provider”.

In a statement, the chairman of the Luminus Group board, Mike Forrest, confirmed to The Hunts Post that the company is currently seeking an organisation to merge with.

Mr Forrest said: “At Luminus, providing excellent services is our top priority. After careful consideration, we are exploring

the potential with our stakeholders for a merger with an organisation that shares our values and a

desire to provide new homes and high-quality services in Cambridgeshire.”

Although talks are said to be under way, the identity of the provider is not yet known.

As part of the preparations for a merger the company is holding a consultation with its tenants, leaseholders and other stakeholders, in order to hear their views on the proposal.

The revelation comes less than two weeks after chief executive Chan Abraham resigned from his post – although no reason was given for the resignation.

Following the departure of Dr Abraham, the company announced that it would be seeking to appoint an interim chief executive to oversee the day-to-day running of the organisation.

Back in March, the company also hit the headlines after it was revealed that a HCA report had concluded its tenants in Huntingdonshire were “exposed to risk of serious harm” after it had failed to comply with gas regulation in more than 1,000 of its properties.

The HCA also found the company’s board was not “maintaining effective control over Luminus and its activities”. As a result, the HCA rated the Huntingdon-based company as non-compliant.

The company, which employs about 300 staff, had a turnover of £44.7million in the year to March 2016. According to its website, Luminus provides homes for more than 45,000 people.

It owns and manages more than 7,000 properties and is registered as a not-for-profit company, limited by guarantee.

It started life in 2000 after the large scale purchase of homes from Huntingdonshire District Council.