Source - Alliance News

A Countryside Partnerships PLC suitor backed a call for the housebuilder and urban regeneration firm to kick off a search for a buyer, adding that it would ‘welcome’ the chance to participate.

San Francisco-based investor Inclusive Capital Partners LP noted a UK press report which stated Browning West LP has in a letter called for Countryside to hunt for an acquirer. Browning is Countryside’s largest shareholder, holding just over a 15% stake.

In-Cap, meanwhile, owns a 9.2% stake and has seen two previous takeover proposals rebuffed.

The Times on Saturday reported investor Browning said Countryside would perform better as a privately-owned firm and that it should find a buyer. Browning said that the actions of Countryside’s board led to a ‘significant destruction of shareholder value’, the Times reported.

The Times said Browning’s founder Usman Nabi called In-Cap a ‘credible bidder’ for Countryside, though did not state whether Browning would back any of In-Cap’s previous approaches.

Brentwood-based Countryside last week Monday confirmed that it had received and rejected two takeover proposals from In-Cap.

It said the first offer made by In-Cap was in mid-April, valuing Countryside at 225 pence per share, with a contingent entitlement of up to 59 pence.

The second bid was made in mid-May, for 295 pence per share. Both proposals were subject tot the satisfaction or waiver by In-Cap of several pre-conditions, including the completion of due diligence.

Countryside shares were 1.3% higher at 286.40p each in London on Monday morning, giving it a market capitalisation of £1.43 billion.

In-Cap said on Monday: ‘In-Cap is supportive of any proposal from shareholders that the board of Countryside run a formal sale process for the company and would welcome the opportunity to participate in any such process.’

In-Cap currently owns 45.8 million shares in Countryside, reflecting a 9.2% interest in the group.

In-Cap Managing Partner Jeffrey Ubben added: ‘We have attempted to engage with the board of Countryside in good faith and have been rebuffed each time despite offering to provide selling shareholders an attractive selling option at a meaningful premium. A robust auction process, with proper due diligence, will allow In-Cap to put its best foot forward. All other shareholders can decide for themselves from the fully informed options in front of them.’

Copyright 2022 Alliance News Limited. All Rights Reserved.

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJBell logo

Related Charts