Countrywide confirms takeover approach

The UK’s largest estate agency chain today confirmed it had received a preliminary takeover approach from an unnamed suitor.

The news follows speculation over the weekend that US-based private equity firm Apollo Management was preparing a £950m (€1.4m) offer for the group.

Apollo’s interest emerged just days after Countrywide shareholders rejected a management buy-out backed by private equity firm 3i.

Some 42% of investors voted against the planned 3i takeover – which required the backing of at least 75% of shareholders – saying it undervalued the company.

Countrywide said the recent approach was from a party not connected to the 3i offer.

Essex-based Countrywide owns some of the biggest brands in the real estate market including Bairstow Eves and Mann & Co. It employs more than 7,000 people at its estate agency division, and also offers financial and legal services.

The offers surrounding Countrywide represent the latest in a number of moves by investors to step into Britain’s housing market.

Housebuilder Wilson Bowden today backed a £2.2bn (€€3.3bn) offer from Barratt Developments after an auction involving a number of the UK’s leading housebuilding firms. Retirement home builder McCarthy & Stone was also the subject of an intense bidding war, while Persimmon acquired Westbury in 2005 for £643m (€974.8m).

In August, Countrywide’s estate agency division banked half-year operating profits of £19m (€28.8m) in the six months to June 30, a sharp turnaround on previous losses of £6.4m (€9.7m).

Countrywide’s shares rose by nearly 7% today.