(Alliance News) -Â Estate agent Countrywide PLC on Tuesday said Executive Chair Peter Long has stepped down with immediate effect, as it noted "insufficient support" amongst shareholders for its Alchemy deal.
Under a proposed recapitalisation announced in October, Alchemy would invest up to GBP90 million through a placing, open offer and tender offer.
"Discussions with the company's shareholders have indicated insufficient support for the Alchemy transaction in its current form, but also a recognition of the need for new capital and a readiness among shareholders to invest in the company," said Countrywide.
The board is continuing to engage with major shareholders to explore "all potential options to deliver a sustainable capital structure" for the company and to maximise shareholder value. This includes exploring a capital raise underwritten by Alchemy on amended terms, the GBP81.8 million takeover approach received from Connells Ltd earlier in the month, and a capital raise from existing shareholders.
On Long's departure, Countrywide said it has appointed Philip Bowcock as interim CEO with immediate effect.
He was previously CEO of William Hill PLC, overseeing a business with a "significant" high street presence and leading it through a retail and digital transition, Countrywide noted.
"Bowcock will lead the discussions with major shareholders towards stabilising the company's capital structure, and discussions with Alchemy Partners and Connells in relation to their proposals," Countrywide said.
Shares in Countrywide were down 2.7% at 223.80 pence in London on Tuesday.
By Lucy Heming;Â lucyheming@alliancenews.com
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