Countrywide surges after Connells makes 250p a share approach

(Sharecast News) - Countrywide shares surged on Monday after it said real estate management company Connells had made an early stage approach to buy the real estate agent for 250p a share in cash.
Countrywide shares closed at 145p on Friday.

"The approach is at an early stage and Connells Limited has indicated that any offer is conditional upon, amongst other things, completion of confirmatory due diligence and the recommendation of the board of Countrywide," it said.

Countrywide added that there can no certainty an offer will be made, nor as to the terms of any such offer.

The company said it has postponed its general meeting as a result of the approach.

In February, Countrywide and LSL Property Services announced they were in talks about a possible merger. However, a month later LSL walked away from the potential deal.

At 1400 GMT, Countrywide shares were up 40% at 202.86p.

CMC Markets analyst David Madden said: "Since the first lockdown was lifted there was a jump in property transactions as the pent-up demand was released. Countrywide were in a relatively weak position when the pandemic struck and recently they had commented on the need to cut debt.

"The offer of 250p equates to a generous premium when you consider it closed on Friday in the 145p region, but keep in mind, before the pandemic, the stock traded close to the 400p mark."