Shares of Countrywide PLC (LON: CWD) today surged 24.2% after the company received a revised buyout offer from Connells Ltd, which raised its takeover bid by 30% to 325p a share valuing the company at £164.4 million, a 27% premium to today’s opening price.
Investors were pleased with the offer as evidenced by the fact that Countrywide’s share price has rallied over 100% ever since Connells, the rival UK property firm, made its initial offer of 250p per share for the company in early November, which was rejected.
Countrywide had received a competing offer from Alchemy Partners, a private equity group, which was revised upwards on Friday to a cash offer at 250p per share combined with a firm placement and an open offer to raise £70 million.
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Countrywide issued an updated saying: “The board will evaluate the merits of the Connells firm offer in consultation with the company’s major shareholders, together with all other available options for the company, including the revised proposal from Alchemy.”
David Liversy, Connells CEO, 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.
Adding:
“Connells is offering a clear vision for the future. Not yet another turnaround attempt based on wishful thinking and flaky financing.”
Countrywide share price
Countrywide shares surged 24.2% today to trade at 316.8p having rallied from Friday’s closing price of 255p.