(Correcting company name in second paragraph.)
(Alliance News) - Countryside Properties PLC on Wednesday noted an announcement from stakeholder Browning West LP in which the investor proposed Chair David Howell be removed.
Browning West - which holds a 9.4% stake in the FTSE 250-listed housebuilder - proposed its own Chief Investment Officer Usman Nabi be added to the Countryside board and a search be initiated to replace Chair David Howell.
The investor also proposed any new chair should be tasked with reassessing the current operating plan to see if there is an opportunity to improve return on capital employed and margins in 2021 and 2022, initiating a process to sell its Housebuilding operation to create a stand-alone Partnerships business, and constructing a prudent capital allocation policy that significantly reduces the risk of any future equity offerings.
"This public call to action comes only after a months-long private dialogue between Browning West and Countryside revealed a reluctance on the part of management and the board to address the company's significant deficiencies or consider meaningful opportunities identified by Browning West to significantly enhance shareholder value," Browning West added.
In response, Countryside stated: "The board remains focused on acting in the best interests of all our shareholders to maximise the value of the company. We maintain an ongoing dialogue with our shareholders and listen carefully to the views they express."
Shares in Countryside were trading 0.5% lower at 442.00 pence each on Wednesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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