Countrywide has agreed to a revised takeover bid from Connells Limited, equal to 395 pence per share or £134.4m.

In a notice of its intention to takeover Countrywide, Connells said all of Countrywide’s lenders will be repaid in full and additional investment will provided in its technology, branch network and people.

The deal was made after 51 per cent of shareholders confirmed support of the acquisition, which is set to be completed in the first quarter of this year.

The Connells bid price for Countrywide has gradually increased since it first offered 250 pence per share in November 2020. 

Connells group chief executive David Livesey says: “Our revised offer of 395 pence per Countywide Share provides shareholders with a 172 per cent. premium to the unaffected price, and has received strong shareholder support including by way of irrevocable undertakings from major Countrywide Shareholders. We believe that the Acquisition is a great deal for all stakeholders.

“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.”

Countrywide acting non-executive chairman David Watson says: “Following a thorough evaluation of options and extensive consultation with the Company’s major shareholders, 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. We are pleased to recommend this offer, which is supported by our major shareholders, and puts the Company on a stronger footing, securing the future of the business, its customers and its employees.”