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Company News

CORRECTED-UPDATE 1- Property firm Connells makes initial approach on Countrywide buyout

(Corrects deal value to 82 million pounds from 127 million pounds in first paragraph)

Nov 9 (Reuters) - British real estate agent Countrywide Plc said on Monday real estate management firm Connells Ltd has submitted an early-stage approach to buy the company in a deal valuing it at 82 million pounds ($107.76 million).

The interest comes months after bigger rival LSL Property Services dropped plans for an all-share merger with Countrywide.

Connells’ potential offer of 250 pence a share is at a 72% premium to Countrywide’s last trading price.

Countrywide, which runs 60 high street brands, including Hamptons International, Bairstow Eves and Bridgfords, said there was no certainty on the terms of any deal and advised its shareholders to not take any action until further notice.

“In the meantime, the Board will continue to engage with its shareholders to examine all potential options to deliver a sustainable capital structure for the Company and to maximise shareholder value,” the company said.

Countrywide, which vies for market share with Foxtons , has been trying to recover from a botched 2015 restructuring that led to four profit warnings and a deeply discounted share issue.

$1 = 0.7610 pounds Reporting by Aakash Jagadeesh Babu in Bengaluru; Editing by Rashmi Aich

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