Troubled estate agency Countrywide has agreed to a takeover by rival Connells in a deal valuing the group at more than £134million.
It comes after Connells upped its offer to 395p a share, up from a 325p bid made on December 7 and a previous 250p-a-share approach.
The recommended bid values debt-laden Countrywide at around £134.4m, or about £223.1m including debts.
Connells pledged to repay all of Countrywide’s lenders in full and invest in the chain’s technology, branch network and workforce.
David Livesey, group chief executive of Connells, said: “Our primary motivation for the acquisition is to invest in and grow the Countrywide business.
“We believe that we have the right management team, strategy and investment firepower to work with the talented teams at Countrywide and lead Countrywide into a bright future.”
David Watson, acting non-executive chairman of Countrywide, added: “We have been encouraged by their recognition of the need to put in place a sustainable capital structure and a willingness to support the company, which is a great business that has been constrained by too much debt.
“This significantly improved offer from Connells allows Countrywide shareholders to realise their investment in cash at a price that fairly values the opportunities and risks of the business.”
