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krustie allslop

Estate agent Countrywide gets £140m emergency cash

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https://www.bbc.co.uk/news/business-45328725

Investors in Countrywide. the UK's largest estate agency owner, have approved a £140m emergency fundraising at the company's annual meeting.

The company owns 50 brands including Bairstow Eves and Hamptons International and employs 8,000 people.

A £200m debt pile and difficult trading conditions have forced Countrywide to raise funds to stay afloat.

Its decision to raise £111m by placing more than 1 billion shares at 10p sent shares crashing earlier this month.

The shares had been trading at about 50p but fell as much as 80% after the fundraising was announced.

They were down 7% to 14p on Tuesday, valuing the company at £76m.

Just 2% of votes were cast against the fundraising, in which Oaktree Capital will buy shares worth £24m.

The private equity group's stake in Countrywide will fall from 30% to 19% as a result.

Last week, Countrywide cancelled plans for a new bonus package for its top bosses following an outcry from investors.

The package could have paid out a total of £20m to three executives, depending on the firm's share price performance over the next three years.

In January, chief executive Alison Platt departed after Countrywide issued a profit warning, with chairman Peter Long becoming executive chairman.

Another profit warning followed in June when the company said results for the first half were likely to be about £20m lower than last year.

 

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My favourite estate agents :rolleyes:.

Good news that they needed emergency funding, bad news that they got it.

Excellent indication of the state of the housing market. Sentiment is everything and another estate agent in trouble is excellent news.

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Surely those funding it now are thinking the balance sheet story will stick and the death spiral could somewhat be reversed. 

F***tons still below 60p too. 

Let's see the autumn bounce become a dive into the abyss. 

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15 hours ago, Slimline said:

Don’t know why they bothered, could have made a nice pre pack debt free post administration buy.

No assets. Just leases.

A dumb PE took a position.

The dumb PE will double down til its bust.

Id guess any sane person - assuming they even held any - sold up ages ago.

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58 minutes ago, spyguy said:

No assets. Just leases.

A dumb PE took a position.

The dumb PE will double down til its bust.

Id guess any sane person - assuming they even held any - sold up ages ago.

Would a sane person have bought them in the first place..  

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  • 142 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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