Connells Limited has made an approach to purchase Countrywide at a price of 250 pence per share, a premium of 72% to the previous closing price of 145 pence per share.

The high street agency contacted the board of Countrywide on 26 October in relation to the possible cash offer.

Moreover, Connells Limited is currently carrying out due diligence on Countrywide before proposing a firm offer.

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According to the board of Countrywide, it is in urgent need of recapitalisation to reduce its net debt and lessen its exposure to its lenders.

The board believes that without improved financial stability it could face administration.

Connells Limited outlined that Countrywide’s lenders have not provided the property service with additional financial headroom, or extended its debt commitments.

As a result, Connells Limited believes that Countrywide needs a new management team, with real estate agency expertise, and a new strategy to turnaround the business.

The high street agency points out that Countrywide has lost over £500m pre-tax over the last three years.

Furthermore, Connells Limited also believes that there must be a significant investment in Countrywide’s technology network.