Countrywide expected to give 'positive reaction' to Apollo takeover terms

Countrywide expected to give 'positive reaction' to Apollo takeover terms

	Published : Wed, 21 Feb 2007 09:23 By : Agencies Print this Story

LONDON (AFX) - The board of Countrywide PLC, the estates agency firm, is expected to give a 'positive reaction' to today's takeover proposals from US buy-out firm Apollo Management LP with the next step likely to be the tabling of a firm offer and a subsequent recommendation from the Countrywide management.

Countrywide, the UK's biggest estate agent and owner of the Bairstow Eves estate agent chain, has been in bid talks with Apollo for about three weeks after rebel shareholders rejected a management buy-out backed by 3i Group PLC.

Today, US private equity firm Apollo confirmed it has proposed to buy Countrywide for about 590 pence a share. The buy-out firm has proposed to pay 505 pence in cash per Countrywide share, plus the equivalent of about 85 pence per share in Rightmove PLC shares. Countrywide owns 21.5 pct of Rightmove, Britain's leading property website.

Apollo's proposal is conditional on receiving indications of support from a

number of Countrywide's significant shareholders, particularly from those shareholders who voted against the offer from Charlie Holdco 4 Limited, the buyout-vehicle put together by 3i.

A spokesman for Countrywide told AFX News this morning that Apollo's move was a 'positive step' for Countrywide and that the next step would be to secure a firm offer from the US firm. 'Assuming all shareholders agree Apollo's terms, then it looks like a good deal,' he added.

Dissident shareholders in Countrywide are believed to have been holding out for a higher offer that values the group at nearer 14 times earnings, rather than the 9-10 times exit multiple proposed by 3i.

Today's offer from Apollo values the whole of Countrywide at about 1.01 bln stg. In the stock market, Countrywide's shares opened 5 pence higher at 586-1/2 at 8.05 am.

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