(Sharecast News) - Countryside Partnerships announced its intention to begin a formal sale process on Monday, after a number of recent unsolicited acquisition proposals.
The FTSE 250 housebuilder and development specialist had announced on 30 May that it had received two unsolicited, non-binding, conditional proposals from Inclusive Capital in relation to a possible offer for the company.
Both proposals were rejected on the basis that they "materially undervalued" the company and the board's view of its prospects.
"The board believes that, given Countryside's differentiated market position and attractive business model, it is well positioned to create significant shareholder value over time," the directors said on Monday.
"The board is confident that, with the clear strategy it has in place and with the ongoing execution of the operational improvement plan announced on 7 April, Countryside has a strong platform to deliver value in excess of the proposals received."
Since the announcement on 30 May, the directors said they had received feedback from a number of significant shareholders over the firm's future.
Countryside said a "meaningful number of shareholders" believed that the company would be in a better position to capitalise on the opportunities ahead as a privately-owned company, or as part of a larger business, and had asked the board to actively seek offers.
"In light of this feedback, the board has decided to conduct an orderly process to establish whether there is a bidder prepared to offer a value that the board considers compelling relative to the long-term standalone prospects of Countryside as a listed company.
"In the event no such compelling proposal is forthcoming, given the board's view of the significant potential for the business as a standalone entity, then the board is committed to Countryside remaining as an independent listed company."
Once relevant preparatory work was complete, Countryside said it had agreed with the Takeover Panel that any discussions with third parties in relation to an offer would take place within the context of a "formal sale process", to enable conversations to take place on a confidential basis.
The preparatory work was expected to take a number of months to conclude.
"When ready, the company intends to conduct a targeted process, focused on those parties who understand and value the full potential of the company, its unique heritage, committed employee base, who will enable the company to continue to prosper in the long term."
Countryside said Inclusive Capital had confirmed that it wished to participate in the formal sale process, and thus it would no longer be subject to a deadline of 1700 BST on 27 June to either announce a firm intention to make an offer or to announce that it did not intend to make an offer.
"Other than Inclusive Capital, the company is not currently in discussions with, nor in receipt of an approach from any potential offeror relating to an acquisition of the issued and to be issued share capital of the company."
In light of the situation, the board said it would be "inappropriate" to continue the share buy-back programme it previously announced, and so it was intending to suspend it until the formal sale process was completed or terminated.
At 0911 BST, shares in Countryside Partnerships were down 0.84% at 283.4p.
Reporting by Josh White at Sharecast.com.
