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£38m sale of Countrywide consultancy arm falls through

first_imgCountrywide has delayed the £38m sale of its commercial consultancy business, driving down its share price.The estate agency group was planning to sell off Lambert Smith Hampton (LSH) to Monaco-based entrepreneur John Bengt Moeller – founder of Hanseatic Holding, one of Germany’s leading property groups.However the deal had not been inked by the 11 March deadline and Countrywide is now looking at other potential suitors.Countrywide is also in separate talks to merge with larger rival LSL Property Services.Countrywide’s shares were down slightly from 275p on Wednesday morning to 262p, before the Coronavirus scare hammered global stock prices.Countrywide, which has a market capitalisation of £53.9m, is carrying a large debt burden that stood at £194.3m last June.Considering legal optionsIn a statement, Countrywide said: “Following protracted efforts to effect completion and after agreeing a revised timetable to complete on more than one occasion, Mr Moeller has failed to complete the transaction in accordance with the final timetable set for completion.“The company continues to engage with Mr Moeller and wish to effect completion as soon as possible. However, given the significant delay caused by him, the company has notified Mr Moeller that it will now also explore alternative options for the sale of LSH, and is considering its legal options to pursue Mr Moeller for damages and costs from continuing delay in completion.”Countrywide says it has started discussions with another interested party that had come forward during the delayed completion period.Reuters news agency reported Moeller, currently director of Great Global Holdings, as saying the delay was the result of “several regulatory compliance challenges, which are outside our control”, adding that he still wished to complete the deal.Trading updateCountrywide also released a trading update on the 2019 financial year. Total group income was £498m, down slightly on the 2018 figure of £515m, which it describes as “a highly resilient performance in a challenging market”. The figure also reflected a loss of tenant fees income of roughly £12m.The company said it had seen a “positive mood swing in public sentiment” through the early part of 2020, which was reflected in a strong start in agreed sales that were “ahead of the board’s expectations”.It added: “Whilst we have seen some softening in recent days as a result of Covid-19, it is too early to assess that impact.”Countrywide’s full-year earnings for 2019 are due to be released later this month.LSH Countrywide 2019 results John Bengt Moeller Lambert Smith Hampton Countrywide March 16, 2020Richard ReedOne commentAndrew Stanton, CEO Proptech-PR Real Estate Influencer & Journalist CEO Proptech-PR Real Estate Influencer & Journalist 16th March 2020 at 9:06 amThe Lambert Smith Hampton debacle is but a sideshow to what has become increasingly a much larger freak show, the total devastation of a Countrywide that is to say national brand.With no deal with LSL, and a very little cash within the business, it will be interesting to see if the banks hold their nerve and wait for a second ‘buyer’ to come forward. In many ways it matters little either way, to sell off the family silver to obtain more credit so the c-suite can do even more damage to the brand, versus, obtaining no money and being forced to call it a day, what is the better option?The final curtain will be the company’s financials later this month, look out for some changes at the top, because whilst the Countrywide show may still want to go on, it may be with some different Ringmasters.Log in to ReplyWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Home » News » Agencies & People » £38m sale of Countrywide consultancy arm falls through previous nextAgencies & People£38m sale of Countrywide consultancy arm falls throughPlans to sell Lambert Smith Hampton to Monaco-based entrepreneur collapse after missed deadline.Richard Reed16th March 20201 Comment2,332 Viewslast_img read more