(Alliance News) - Property firm Countrywide PLC on Wednesday said John Bengt Moeller has failed to complete the purchase of its commercial real estate consultancy business.
Shares were 2.6% lower on Wednesday shortly after midday in London at a price of 250.00 pence each.
In November, Milton Keynes-based Countrywide said it had agreed to sell Lambert Smith Hampton to Moeller for GBP38 million in cash.
Moeller is the chair of Great Global Holdings Ltd, a holding company for a number of UK and international businesses.
However, Countrywide said Wednesday: "Following protracted efforts to effect completion and after agreeing a revised timetable to complete on more than one occasion, Moeller has failed to complete the transaction in accordance with the final timetable set for completion by 1200 GMT on March 11.
The company continues to engage with Moeller and wishes to effect completion as soon as possible. However, given the significant delay caused by him, the company has notified Moeller it will now also explore alternative options for the sale of LSH, and is considering its legal options to pursue Moeller for damages and costs from continuing delay in completion."
"Meanwhile, the company has entered into discussions with another interested purchaser that actively expressed an interest in LSH during the delayed completion period," Countrywide added.
Countrywide also said Wednesday total income for 2019 fell 3.3% to GBP498 million, though it said this result was "highly resilient" in a tough market. It came after a loss of tenant fees income of GBP12 million.
Adjusted earnings before interest, tax, depreciation and amortisation for 2019 is expected to be both ahead year-on-year and ahead of board expectations. In 2018, the figure was GBP32.7 million, half the year prior.
"The group has seen a positive mood swing in public sentiment through the early part of 2020 which we have seen reflected in a strong start in agreed sales which are ahead of the board's expectations through February 2020," said Countrywide.
"Whilst we have seen some softening in recent days as a result of covid-19, it is too early to assess that impact."
By George Collard; georgecollard@alliancenews.com
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