But housebuilder 鈥榥ot engaging鈥� with offer talks, says Inclusive Capital Partners
A San Francisco-based ethical investment fund said it has made two approaches to partnerships housebuilder Countryside to discuss a potential 拢1.5bn takeover offer.
Inclusive Capital Partners, which currently owns a 9% stake in the 拢600m-turnover housebuilder, says it approached Countryside twice in the past two months about a potential offer to acquire the firm鈥檚 entire share capital and take it private.
In a stock exchange announcement today, Inclusive Capital said it requested that Countryside 鈥渆ngage in good faith鈥� and provide access to materials 鈥渢o determine if the terms of a recommended offer could be agreed upon鈥� on 17 May.
However, it said that Countryside informed the investor on 26 May it 鈥渨ould not engage鈥� with Inclusive Capital. Countryside has been approached for comment.
Inclusive Capital wants to discuss acquiring the firm for 295p per share, which would equate to a purchase of around 拢1.5bn. The housebuilder鈥檚 share price this morning stood at 297.8p.
Inclusive Capital says it invests in companies that offer 鈥渃ompelling value propositions and generate measurable positive impact on the environment and society鈥�.
It said it believes that Countryside meets a 鈥渃ritical societal need鈥� in providing affordable housing through its partnerships model. It pointed to Countryside鈥檚 recent losses, which led to the departure of chief executive Iain McPherson this year and to impairment charges relating to its 2018 purchase of housebuilder Westleigh, as evidence it could run the business better.
Jeffrey Ubben, founder and managing partner of Inclusive Capital, said: 鈥淲e believe Countryside is meeting a critical societal need and, as a holder of approximately 9% of the issued share capital of Countryside, Inclusive Capital believes Countryside is best positioned to serve this role and to succeed as a private company under ownership of investors with a long-term investment approach.
鈥淚n contrast, the board of directors of Countryside has presided over the flawed acquisition of Westleigh in 2018, a dilutive equity financing in 2020, and the appointment of a chief executive officer [鈥 that oversaw overly ambitious expansion into new geographies and investment into excess manufacturing capacity that is now generating losses.鈥�
Under the City merger and takeover code, Inclusive Capital has until 27 June to announce a firm intention to make an offer.
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