Countrywide rejects Connells takeover bid

Last month, Countrywide confirmed it was talks with Connells regarding a potential takeover deal estimated to be worth around £90m.

On 23rd November, Connells offered to pay 250p per Countrywide share, but said the making of a firm offer was subject only to the recommendation of the Countrywide Board and shareholder support.

Countrywide is now considering a revised offer from private equity group Alchemy Partners which offers shareholders a chance to sell shares for 250p each, alongside a recapitalisation of approximately £70m.

The proposal also includes a firm placing of 15.6 million shares to Alchemy for an issue price of 225p each, generating gross proceeds of approximately £35m, and an open offer of 35 million shares at 100p each, which would be implemented following completion of the possible offer.

In a statement, Countrywide said: "The Board remains committed to engaging with all major shareholders to examine all potential options, including (but not limited to) the Revised Alchemy Proposal and a capital raise from existing shareholders of the Company."