Connells/Countrywide deal going to shareholders next month

Countrywide shareholders will next month have the opportunity to vote on the Connells bid to purchase the troubled estate agency group.

The special AGM for Countrywide will be held, virtually, on February 15; Connells has already declared it has irrevocable backing from over 50 per cent of shareholders.

It was just before Christmas that Connells - part of the Skipton Building Society - announced it had struck an agreed offer for Countrywide, of around £130m. This was a cash offer at 395p a share, well above its original 250p a share offer in November. 

Connells has subsequently stated that it is likely to keep the 40-plus Countrywide brands and its network of some 650 branches; Connells Group itself has just over 580 branches.

However, there may be substantial back-office savings through the elimination of duplication and possible movement of both companies’ head office activities into one building.

Over the weekend private equity company Alchemy Partners - which was at one time the favourite to take control of Countrywide - formally scrapped its proposals.

Alchemy released a statement saying: “Further to previous announcements made in relation to a possible offer by Alchemy for Countrywide plc, Alchemy today confirms that it does not intend to make an offer for the entire issued and to be issued share capital of Countrywide.”

You can read more on Connells’ plans for Countrywide here.