LONDON: The board of Connells Limited has completed its due diligence in relation to Countrywide plc and re-confirmed its proposal to acquire Countrywide at a price of 250 pence per Countrywide share, translating into an enterprise value of £172.3 million.

The making of any firm offer in accordance with Rule 2.7 of the Code is now subject only to receiving the recommendation of the Countrywide Board and Connells obtaining irrevocable undertakings from Countrywide’s major shareholders. 

The Possible Cash Offer would provide Countrywide shareholders with immediate, certain and significant value, at a substantial premium to Countrywide’s undisturbed share price of 145.0 pence per share. 

The combination of Connells and Countrywide would enhance the security and stability of Countrywide’s business for the benefit of its employees, customers, and other stakeholders and ensure that Countrywide’s lenders would be repaid in full.

The Connells Board has noted the press speculation about alternative proposals under which Countrywide would remain as a listed company with a recapitalised balance sheet and new management team. 

The Connells Board believes that its Possible Cash Offer is significantly more attractive to Countrywide shareholders than any alternative proposal, if one is ever made, under which Countrywide remains as a listed company in the speculative hope that it can raise the necessary capital, find the right management, implement the right strategy, make the required investment, motivate its employees and overcome significant market uncertainty in order to potentially deliver some incremental future value to Countrywide shareholders in excess of the value of the Possible Cash Offer.

Commenting today, David Livesey, the 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 for Countrywide.  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% premium to the undisturbed price, with none of the downside risks of remaining independent.” 

Founded in 1936 and comprising nearly 600 branches nationwide, Connells group has grown into one of the UK’s largest, most profitable high street estate agency and property services providers.

In addition to operating under the Connells brand, the group trades under other well-known local names including Allen & Harris, Bagshaws Residential, Barnfields, Barnard Marcus, Brown & Merry, Fox & Sons, Jones & Chapman, Knight Partnership, Manners & Harrison, Roger Platt, Shipways, Swetenhams, William H Brown, Sharman Quinney, Burchell Edwards, Ashley Adams, Peter Alan, Rook Matthews Sayer, Paul Dubberley and Gascoigne Halman. 

As well as residential property sales and lettings, Connells group has a comprehensive range of business to consumer and business to business services including new homes, mortgage services, conveyancing, surveying, corporate lettings, asset management, land & planning and auctions.  www.connellsgroup.co.uk