(Alliance News) - Countrywide PLC on Monday said it has received a possible takeover offer valuing the estate agent at GBP81.8 million.
Connells Ltd has approached Countrywide with a 250 per share offer. Shares in Countrywide were up 45% at 210.00 pence in London on Monday, giving the company a market capitalisation of GBP68.9 million.
The stock closed at 145p on Friday.
"The approach is at an early stage and Connells Ltd has indicated that any offer is conditional upon, amongst other things, completion of confirmatory due diligence and the recommendation of the board of Countrywide," said Countrywide.
There is no certainty an offer will be made, nor as to the terms of any such offer.
High street estate agency and property services provider Connells confirmed the approach in a its own release on Monday.
"Connells believes that Countrywide needs a new management team, with real estate agency expertise, and a new strategy to turnaround the business. The enormous scale of the challenge that the new team will face can be seen by the fact that they will need to reverse the performance of a business that has lost over GBP500 million pre-tax over the last three calendar years. Connells also believes that significant and sustained investment is required in Countrywide's technology, network and people to put the business back on a solid footing in a challenging market," Connells said.
Countrywide said it has postponed a general meeting to approve shareholder resolutions related to its transaction with Alchemy Partners.
Under a proposed recapitalisation announced in October, Alchemy would invest up to GBP90 million through a placing, open offer and tender offer.
"The board will continue to engage with its shareholders to examine all potential options to deliver a sustainable capital structure for the company and to maximise shareholder value," said Countrywide.
By Lucy Heming;Â lucyheming@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
