Countrywide shareholders have overwhelming approved the proposed sale of the firm’s commercial property arm Lambert Smith Hampton for £38 million.
The disposal of the company to Monaco-based international property entrepreneur John Bengt Moeller will be completed tomorrow and the new cash will be used to reduce the company’s considerable debts and help secure a larger credit facility.
The approval was part of a six-resolution meeting held at 25 Charterhouse Square (pictured, above) in the City on Friday during which the company’s shareholders were also asked to vote on several other key matters.
These included a 50 for 1 share consolidation designed to reduce the huge amount of Countrywide stock in circulation.
This has led to the shares being monitored recently by City regulators on several occasions after trading in the stock became volatile.
The consolidation will see one ordinary share of £0.50 replace every 50 existing ordinary shares of £0.01 each. These 50p shares will be consolidated, subdivided and re-designated into one new ordinary share of £0.01 and 49 deferred shares of £0.01.
The new shares, which will now number some 32.8 million, will begin trading on the London stock exchange today.
After several years of bad news, City confidence in Countrywide appears to be rising and leading analyst Chris Millington has told Citywire that investors should hold on to its shares.
“Countrywide has endured a tough few years, but the new management team are taking decisive action to try and improve the operational and financial structure of the business,’ he said.
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