Shares of Countrywide PLC (LON: CWD) are trading about 3.5% in the red today on news the company has dropped a £90 million proposal from Alchemy.
In a hectic few days at Countrywide, the firm said the deal with Alchemy to raise £90 million in cash has been dropped as it received insufficient support. The firm is seeking to raise funds to improve its balance sheet and Alchemy deal was one of the three options.
“Discussions with the Company's shareholders have indicated insufficient support for the Alchemy Transaction in its current form, but also a recognition of the need for new capital and a readiness among shareholders to invest in the Company,” Countrywide said in a statement.
The second option was to raise cash from existing shareholders while the real estate management firm Connells made a takeover offer yesterday centred around 250p per share.
Connells said that Countrywide needs more than £90 million offered from Alchemy to solidify its business.
“The Company will provide an update on these discussions in due course as appropriate,” it is said in the statement.
Furthermore, Countrywide said that it is hiring Philip Bowcock as interim chief executive to replace Peter Long, who is stepping down and retiring to become a director. Bowcock was CEO at bookmaker William Hill until a year ago.
“Mr Bowcock will lead the discussions with major shareholders towards stabilising the Company's capital structure, and discussions with Alchemy Partners and Connells in relation to their proposals.”
The Group Managing Director Paul Creffield will also leave the company within a year.
Countrywide share price is trading around 3.5% lower on the day but still up over 45% in November on positive vaccine news.
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