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Countrywide rejects Connells offer
2nd Dec 2020 09:28
(Sharecast News) - Countrywide said on Wednesday that it has rejected a possible 250p a share takeover approach from real estate management company Connells and that it is in talks with private equity group Alchemy Partners about a possible cash injection.
"On 23 November 2020, Connells announced that its due diligence work on Countrywide had been completed, that its offer price was re-confirmed at 250 pence per share in cash, and that the making of a firm offer was subject only to the recommendation of the Countrywide board and shareholder support," the company said.
"Following a thorough review of the possible cash offer with its advisers, the board has unanimously rejected the possible cash offer."
Countrywide also said that Alchemy has recently submitted to an indicative revised proposal for an equity raising fully underwritten by the private equity firm. It would provide an opportunity for existing shareholders to sell their Countrywide shares at 250p a share, to be fully funded by Alchemy
It would also entail a recapitalisation of around £70m to be fully underwritten by Alchemy. This would comprise a placing of approximately 15.6 million ordinary shares to Alchemy Partners at 225p each, generating gross proceeds of £35m, and an open offer of around 35m shares at 100p each.
Countrywide said: "The revised Alchemy proposal would enable shareholders who wish to realise their investment in Countrywide to sell their shares to Alchemy Partners, whilst also enabling those shareholders who continue to believe in the potential of Countrywide to retain their existing stake and, if they choose, invest further capital."
The company said it "remains committed to engaging with all major shareholders to examine all potential options, including (but not limited to) the revised Alchemy proposal and a capital raise from existing shareholders".
"On 23 November 2020, Connells announced that its due diligence work on Countrywide had been completed, that its offer price was re-confirmed at 250 pence per share in cash, and that the making of a firm offer was subject only to the recommendation of the Countrywide board and shareholder support," the company said.
"Following a thorough review of the possible cash offer with its advisers, the board has unanimously rejected the possible cash offer."
Countrywide also said that Alchemy has recently submitted to an indicative revised proposal for an equity raising fully underwritten by the private equity firm. It would provide an opportunity for existing shareholders to sell their Countrywide shares at 250p a share, to be fully funded by Alchemy
It would also entail a recapitalisation of around £70m to be fully underwritten by Alchemy. This would comprise a placing of approximately 15.6 million ordinary shares to Alchemy Partners at 225p each, generating gross proceeds of £35m, and an open offer of around 35m shares at 100p each.
Countrywide said: "The revised Alchemy proposal would enable shareholders who wish to realise their investment in Countrywide to sell their shares to Alchemy Partners, whilst also enabling those shareholders who continue to believe in the potential of Countrywide to retain their existing stake and, if they choose, invest further capital."
The company said it "remains committed to engaging with all major shareholders to examine all potential options, including (but not limited to) the revised Alchemy proposal and a capital raise from existing shareholders".