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TODAY'S OTHER NEWS

Countrywide Deal Done - Shareholders back Connells offer

Countrywide shareholders have overwhelmingly backed the offer by Connells to buy the company.

At a special virtual AGM today 99.58 per cent of Countrywide shareholders approved the deal - just 0.42 per cent opposed.

Under the terms of the acquisition, each Countrywide shareholder will be entitled to receive 395 pence in cash for each share. 

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All of Countrywide's lenders will be repaid in full and Connells will provide additional investment in Countrywide's technology, branch network and people, “stabilising and enhancing Countrywide's business for the benefit of its customers, employees and other stakeholders.”

As part of the new deal Connells says there are likely to be areas of duplication in what it calls “operational infrastructure” where savings can be made.

These are:

- duplicated costs across some head office and/or centralised administration functions, which could result in some headcount reductions and relocations;

- IT expertise and best practices across both Connells and Countrywide; and

- savings from “the removal of listing, administrative and other related operational expenses.”

Connells’ existing HQ is only nine miles away from Countrywide’s, so there are likely to be additional savings on premises.

Countrywide still formally requires the approval of the Financial Conduct Authority to the takeover; that should be completed by the end of March, at which time a request will be made by Connells to cancel trading in Countrywide shares on the London Stock Exchange and to de-list Countrywide.

  • Algarve  Investor

    Interesting. Will it be Connells Countrywide, as looks quite neat in the picture above, or will the CW name be ditched completely?

    Definitely a far more sensible deal than CW falling entirely into the hands of private equity firms, who no doubt would have sucked as much as possible out of a dying brand - much like Debenhams, BHS, etc. At least with the Connells takeover, the Countrywide brands have a chance of recovering.

    A great deal from Connells, who seem like a pretty stand-up company and one of the few successful examples of an agency being owned by a building society.

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    • Mr P
    • 15 February 2021 17:13 PM

    £7226 spent on shares as an employee. I had hoped the share price would improve and one day and at least realise some of the cash spent. Today’s value £101.76! Thanks Alison Platt not only did you screw up business when you were there but 5 years on your still screwing us!

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    I worked for Countrywide and lost nothing. It only took a modicum of research and a look performance to see that both the first SAYE scheme and the replacement scheme were flawed. The second scheme was nothing to do with Alison Platt
    Got hauled over the coals by Snr Management for advising staff to avoid like the plague. Some listened but many didn't.
    Remember the day when all the senior management left their meetings to buy shares at 10p. They were so smug with themselves. Thankfully the majority of staff were never given that option.
    Sorry you lost so much but why did you keep investing ?

     
    Algarve  Investor

    I agree it's too simplistic to blame Alison Platt - her tenure was a disaster, but the problems existed before she took over and have existed since she left her post a good while ago now. The company hasn't recovered or gone back to basics, it's lurched from one crisis to another and one boardroom clear-out to the next.

    They went too big and too broad, and tried to stick their finger in way too many different pies, and that has bitten them in the end. Stick to what you know best.

     
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