(Sharecast News) - Countrywide's recapitalisation plans were thrown into disarray on Tuesday after shareholders rejected a £90m offer from Alchemy Partners.
The listed estate agent group, owner of Hamptons International and Bairstow Eves, among others, also confirmed that executive chairman Peter Long was stepping down with immediate effect.
The board had urged shareholders to back Alchemy's offer, first announced in October, noting that it would cut its £92m debt burden and shore up the balance sheet.
"The group is at a critical inflection point and is in urgent need of a recapitalisation to reduce its net debt and lessen its exposure to lenders," it said at the time.
But on Tuesday Countrywide said there had been "insufficient support" from shareholders for the deal in its current form, which would have given Alchemy effective control of the business with a stake of between 50.1% and 67.7%.
The company said it would now consider other ways of raising funds, including amending the terms of Alchemy's proposal; accepting an indicative 250p-per-share approach from fellow property services firm Connells Group, announced earlier this month; or a capital raise from existing shareholders.
Long, meanwhile, has been replaced by Philip Bowcock, the former head of bookmakers William Hill, who joins as interim chief executive. Countrywide said that Bowcock will lead the discussions with major shareholders, as well as Alchemy and Connells, which is owned by the Skipton Building Society.
David Watson, former deputy chairman and now acting non-executive chairman, said: "This is a fundamentally sound business with a bright future. Philip's wealth of experience in leading large, listed companies will be hugely valuable as we navigate the near-term challenge of recapitalising the business and position it for long-term success."
Long said: "It was always my intention to step back when we found the right figure to take Countrywide forward, and Philip is that person."
Bowcock said that Countrywide was a strong business but had been "held back" by its debt burden.
A search for a new independent chair is now underway.
Also leaving the company is Paul Creffield, group managing director, who announced that he will retire with effect 24 November 2021.
As at 1115 GMT, shares in Countrywide were off 1% at 227.02p.
Countrywide is the UK's largest listed estate agent group with more than 700 branches.
8 Mar 2018 10:36
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