Connells ups bid for Countrywide
Estate agents chain Connells, which has branches across the West Midlands, hopes to buy rival group Countrywide for around £112 million.
It has announce a firm cash offer for the entire issued and to be issued share capital of Countrywide at a price of 325p per share.
Following discussions with Countrywide's major shareholders, Connells has increased its previous proposed offer price by 30 per cent.
It would mean shareholders got a 124 per cent premium to Countrywide's unaffected share price.
Under the offer, all of Countrywide's lenders will be repaid in full and additional investment will be provided, giving the business the financial strength to recover from under investment in recent years.
Connells, which has 180 branches and its head office in Leighton Buzzard, believes that its proposed acquisition of Countrywide will not give rise to any competition concerns on any markets in which Connells and Countrywide operate.
David Livesey, group chief executive of Connells, said: "Countrywide desperately needs a deliverable solution to its current financial problems and lack of strategic direction. Putting Countrywide back on track requires sustained investment and gritty operational improvement over many years. Connells is offering a clear vision for the future, not yet another turnaround attempt based on wishful thinking and flaky financing."
London-based Countrywide sells and rents properties through 60 high street brands.
It board will evaluate the merits of the Connells ' offer in consultation with the company's major shareholders, together with all other available options for thecompany, including the revised proposal from Alchemy announced by the Company on December 2 and a capital raise from existing shareholders of the company.
It is urging shareholders to take no action at this time in relation to the Connells' offer.
