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Countrywide recommends shareholders back recapitalisation as Alchemy tables £90m investment
StockMarketWire.com
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Homebuilder Countrywide urged shareholders to back its recapitalisation plan that would see Alchemy take a majority stake in the company with a £90 million investment and a shake up of the board including a new leadership team.
Following the recapitalisation, a new chairman, Carl Leaver, would join the board, while Alchemy was also in discussions with a potential new chief executive officer to lead the development of a detailed execution plan following a strategic review, the company said.
Alchemy will invest £90m through a firm placing and placing and open offer of 6,684,215 shares at 135 pence per share and by funding the repurchase of shares at 180p a share by the company.
The recapitalisation would be put to shareholders for a vote at a general meeting.
If the proposed transaction was approved and implemented, then Alchemy would hold between approximately 50.1% and 67.7% of the enlarged share capital.
As part of the recapitalisation plan, the company would enter into £75 million term loan facility agreement, enabling the group to reduce its net debt by £50 million.
'The board believes that the Alchemy proposal provides the greatest certainty for the company's future and a clear route forward for the business ... [and] unanimously recommends that shareholders vote in favour of the [transaction.]' At 8:11am: (LON:CWD) Countrywide Plc share price was -21.4p at 163.05p
Story provided by StockMarketWire.com
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