In-Cap lines up £1.47bn bid for Countryside Partnerships

30th May 2022 07:32

(Sharecast News) - Countryside Partnerships confirmed on Monday that it had rejected a £1.47bn takeover proposal from US investment firm Inclusive Capital as it "materially undervalued" the business and its prospects.

Responding to an earlier statement from In-Cap, which accused the housebuilder of refusing to engage with it over the proposals, Countryside confirmed it had rejected two proposals. The first proposal of 225p a share plus a contingent entitlement of up to 59p was received in April, and the second, at 295p a share, was received earlier this month.

"In evaluating the proposals, the board believes that they do not reflect the opportunity for shareholder value creation taking into account Countryside's differentiated market position and attractive business model," Countryside said.

Earlier, In-Cap, which has a 9.2% stake in Countryside, said the group had refused to engage in talks or provide access to due diligence materials.

"The In-Cap team believes that Countryside shareholders deserve the opportunity to decide on the merits of any offer, and that if an approach is made in good faith, the Countryside board should act in the interests of its shareholders by engaging with the potential offeror and not deny its shareholders this opportunity," it said.

"We believe Countryside is meeting a critical societal need and is best positioned to serve this role and to succeed as a private company under ownership of investors with a long-term investment approach," said Jeffrey Ubben, who founded In-Cap in 2020.

"In contrast, the board of directors of Countryside has presided over the flawed acquisition of Westleigh in 2018, a dilutive equity financing in 2020, and the appointment of a chief executive officer with little to no prior public company executive experience that oversaw overly ambitious expansion into new geographies and investment into excess manufacturing capacity that is now generating losses."