Countrywide management backed by shareholders in bid for new funds

Countrywide’s embattled management leaders have been overwhelmingly backed by shareholders in their bid for additional funding.

A General Meeting of shareholders was held this morning and an announcement from the company, made to the London Stock Exchange at lunchtime, says: 

“Further to the announcements made on 2 and 21 August 2018 in respect of the Firm Placing and Placing and Open Offer, the Company is pleased to announce that, at the General Meeting of the Company held at 10:30 a.m. today, the Capital Refinancing Resolutions set out in the combined prospectus and circular published on 2 August 2018 (the Combined Prospectus and Circular) were each duly passed by shareholders by way of a poll. As announced by the Company on 20 August 2018, the Remuneration Resolutions set out in the Combined Prospectus and Circular were withdrawn prior to the General Meeting.”

The fund-raising - which last week was modified to drop a controversial incentive scheme for the three most senior managers - won 98 per cent backing from Oaktree Capital Management, and 99 per cent approval from Brandes Investment Partners. These are the two major investors in Countrywide.

New shares will begin trading on Thursday as Countrywide attempts to raise up to £140m in a bid to pay off some of its £200m debt pile.

Its share price early this afternoon was down seven per cent at 14p, valuing the company at little over £75m.