Countrywide shares rally on £82m takeover bid

Connells has confirmed a £82m takeover bid for Countrywide.

The estate agent chain said on Monday morning that it would offer 250p per share in cash.

David Livesey, Connells group chief executive, said: “Countrywide shareholders have repeatedly been promised jam tomorrow and it has never been delivered.

“There is no quick and easy fix. Turning the business around, especially in unpredictable market conditions, will be a difficult, expensive and lengthy process.

“Countrywide needs new ownership, not yet another speculative scheme that is based on hope rather than experience.

“Our proposal gives Countrywide shareholders significant immediate upside in cash, at a 72 per cent premium to the undisturbed price, with none of the downside risks of remaining independent.”

Connells has also said that without this offer, Countrywide is likely to “enter administration without a significant capital injection.”

The firm offer is now subject to the approval of the board and shareholder support.

Shares in the estate agent group (LON: CWD) rocketed almost 8% on the news and are currently trading at 233,20 (1443GMT).

 

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.