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Countrywide to sell commercial business, announces share consolidation
29th Nov 2019 09:51
(Sharecast News) - Countrywide has agreed to sell its commercial business, Lambert Smith Hampton, to John Bengt Moeller for £38m in cash.
The company said the sale will strengthens its financial position and enable it to reduce debt and focus on its core residential services business. The transaction, which is expected to complete at the end of the year, is subject to shareholder approval.
Executive chairman Peter Long said: "The sale of the Lambert Smith Hampton commercial business strengthens the group. Once completed, we believe that the group will be in a more advantageous position in our core residential market."
Countrywide also said it was simplifying its share capital with a 50 for 1 share consolidation, which is also subject to shareholder approval.
"The board believes that the share consolidation will improve market liquidity by reducing the volatility and spread, making our shares more attractive," it said.
The company also said it had agreed an amended credit facility with its lender. It includes provisions for a minimum credit facility of around £95m to September 2022.
"The new facility provides the group with the financial flexibility to execute the turnaround plan while operating in what continues to be a challenging and uncertain market environment."
Countrywide said it continues to make progress in its turnaround and the group is on track to deliver full-year results in line with the board's expectations.
At 0950 GMT, the shares were up 14% at 5.33p.
The company said the sale will strengthens its financial position and enable it to reduce debt and focus on its core residential services business. The transaction, which is expected to complete at the end of the year, is subject to shareholder approval.
Executive chairman Peter Long said: "The sale of the Lambert Smith Hampton commercial business strengthens the group. Once completed, we believe that the group will be in a more advantageous position in our core residential market."
Countrywide also said it was simplifying its share capital with a 50 for 1 share consolidation, which is also subject to shareholder approval.
"The board believes that the share consolidation will improve market liquidity by reducing the volatility and spread, making our shares more attractive," it said.
The company also said it had agreed an amended credit facility with its lender. It includes provisions for a minimum credit facility of around £95m to September 2022.
"The new facility provides the group with the financial flexibility to execute the turnaround plan while operating in what continues to be a challenging and uncertain market environment."
Countrywide said it continues to make progress in its turnaround and the group is on track to deliver full-year results in line with the board's expectations.
At 0950 GMT, the shares were up 14% at 5.33p.