Countrywide shares (LON: CWD) soared 23% after Connells made a £112m cash offer.
After its previous offer was rejected, estate agency group Connells upped its offer to 325p per share – increasing the offer from the previous 250p price.
David Livesey, Group Chief Executive Officer 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. Connells’ cash offer of 325 pence per share is the only tangible deal on the table and gives shareholders a huge premium over the value of their Countrywide Shares before we announced our interest.
“Although we have approached the Countrywide Board to seek its recommendation of our Offer, we think it is in the interests of everyone for us to announce our offer today so that all of Countrywide’s shareholders are aware of the compelling nature of our proposal.”
In a statement, Connells said that the new offer “is significantly more attractive to shareholders than any potential alternative proposal under which the group remains a listed company with all the risks and uncertainties that this would involve.”