(Alliance News) - Countrywide PLC on Thursday said it has agreed to be taken over by peer Connells Ltd in a deal which values the UK estate agency at GBP223.1 million.
Connells will acquire Countrywide for 395 pence per share, reflecting a more than doubled premium to Countrywide's closing price of 145p on November 6, the day before Connells made its first bid.
The latest offer values Countrywide's share capital at GBP134.4 million and implies and enterprise value of GBP223.1 million.
Shares in Countrywide were 12% higher at 388.00 pence early Thursday in London.
In early November, Connells had approached Countrywide with a takeover offer of 250 pence per share.
However, the offer was rejected by Countrywide, and after another offer by private equity firm Alchemy Special Opportunities LLP for the same amount, in addition to a recapitalisation of the company, Connells raised its bid to 325p per share, or an enterprise value of GBP200.2 million in total, in early December.
Connells said it has received written confirmations of support for the acquisition from Countrywide shareholders in respect of 16.8 million shares, representing 51% of Countrywide's equity.
The acquisition is conditional on gaining at least 75% shareholder approval, regulatory approval from the UK Financial Conduct Authority and the scheme being sanctioned by the High Court of Justice in England & Wales.
Should all conditions be met, the deal is set to be completed in the first quarter of 2021.
"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," said Countrywide Acting Non-Executive Chair David Watson.
Added Connells Chief Executive David Livesey: "Our primary motivation for the acquisition is to invest in and grow the Countrywide business. We believe that we have the right management team, strategy and investment firepower to work with the talented teams at Countrywide and lead Countrywide into a bright future."
By Dayo Laniyan; dayolaniyan@alliancenews.com
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