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LSL pulls out of Countrywide takeover

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  • 16/03/2020
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LSL pulls out of Countrywide takeover
The merger between LSL and Countrywide has been called off after LSL withdrew from the £500m deal.

 

In February, the two estate agents confirmed they were in talks regarding a merger which would include LSL’s financial service brands network Primis and club The Mortgage Alliance (TMA). At the time, it was said there was no certainty that an offer would be made. 

In an update released today, LSL confirmed it did not intend to make an offer for the property group. 

Countrywide said it had been seeing the benefits of its turnaround plan with “continuing operations having returned to growth in profitability”.  

It also said it had seen positive public sentiment in the early part of 2020, reflected in strong agreed sales ahead of company expectations. 

The board said it remained confident in the strength of the business as an independent company. 

 

LSH deal collapse 

This news comes just days after Countrywide’s attempts to sell its commercial real estate subsidiary Lambert Smith Hampton (LSH) also fell through. 

In November, the firm was sold to John Bengt Moeller, chairman of American real estate company Great Global Holdings, in a £38m deal which was subject to shareholder approval. 

The sale was approved on 20 January, however, Moeller failed to complete the transaction by the 11 March deadline despite Countrywide stating it had made several efforts and revisions to the timetable to get it done. 

Countrywide is continuing to engage with Moeller to complete the deal and is also looking at alternative options for the sale of LSH. The firm is also considering seeking damages and costs for the delays caused by Moeller. 

It said it was in discussions with another potential seller who expressed interest in the real estate business during the delays. 

Countrywide said it would update shareholders in due course. 

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