(Bloomberg) -- Struggling U.K. realtor Countrywide Plc received an indicative takeover offer from property firm Connells Ltd.
Under the proposal, Connells would buy up all Countrywide stock for 250 pence per share in cash, a premium of 72% to Friday's closing price, according to a company statement on Monday. Connells, a privately owned real estate firm, has until Dec. 7 to make an offer.
Shares in Countrywide soared as much as 57% in London on Monday morning, but are still down about 31% for the year. The company has a market value of 69.5 million pounds.
Countrywide said last month that it was in “urgent need of recapitalization” to reduce debt and strengthen its finances to weather the pandemic-fueled economic slump, with funds advised by private equity firm Alchemy Partners ready to invest as much as 90 million pounds in the realtor.
The firm is no stranger to private equity-led approaches, and was taken over by Apollo Global Management in 2007. Another private equity firm, Oaktree Capital, began buying up the company's debt the following year and eventually became its biggest owner before gradually reducing its stake.
Connells said it approached the Countrywide board with its offer on Oct. 26, and is carrying out due diligence on the firm. It said Countrywide needs a new management team and “significant and sustained investment” in its “technology, network and people to put the business back on a solid footing in a challenging market.”
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