(Sharecast News) - Countrywide shares surged on Thursday after the estate agent accepted a sweetened takeover offer from rival Connells which values the group at more than £134m.
Under the terms of the deal, Countrywide shareholders will receive 395p a share in cash. This is a 172% premium to the unaffected share price. At the time of its IPO in 2013, Countrywide was valued at £750m.
Connells said it had won support from holders of 51% of Countrywide shares. Countrywide had previously rejected offers of 250p a share and 325p a share.
Countrywide's acting non-executive chairman, David Watson, said: "Following a thorough evaluation of options and extensive consultation with the company's major shareholders, we have been encouraged by their recognition of the need to put in place a sustainable capital structure and a willingness to support the company, which is a great business that has been constrained by too much debt.
"This significantly improved offer from Connells allows Countrywide shareholders to realise their investment in cash at a price that fairly values the opportunities and risks of the business. We are pleased to recommend this offer, which is supported by our major shareholders, and puts the company on a stronger footing, securing the future of the business, its customers and its employees."
The deal is expected to complete in the first quarter of next year.
At 0950 GMT, Countrywide shares were up 12.3% at 389p.
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