(Alliance News) - Countrywide PLC on Wednesday said it has received a revised proposal from Alchemy Partners as it rejected a 250 pence per share takeover offer from Connells Ltd.
Shares in the FTSE 250-listed estate agent were trading 8.1% higher at 245.00p each on Wednesday morning in London.
In October, Countrywide announced a proposed recapitalisation that would see Alchemy Partners invest up to GBP90 million through placing, open offer and tender offer, noting that should the transaction be approved Alchemy would hold between a 50% to 68% stake.
On Wednesday, the estate agent stated the revised proposal from Alchemy includes an opportunity for shareholders to sell their shares at 250p each as well as a recapitalisation of the company of around GBP70 million comprising a firm placing of 15.6 million shares to Alchemy for an issue price of 225p each and an open offer of 25 million shares at 100p each.
Countrywide noted the offer would allow shareholders who wish to realise their investment to sell their shares to Alchemy Partners, while also enabling the remaining shareholders to retain their existing stake and possibly invest more capital.
However, high street estate agency & property services provider Connells advised Countrywide shareholders to take no action in relation to the revised proposal after its own 250p takeover offer was rejected.
In November, Connells made the takeover over valuing Countrywide at GBP81.8 million. However, on Monday, Countrywide stated that following a "thorough review", its board had unanimously rejected the offer.
Full results for Countrywide's financial year ended September 30 will be published on Thursday.
By Ife Taiwo; ifetaiwo@alliancenews.com
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