One of the major shareholders in Countrywide has today revealed that it is strongly opposed to the company’s plans to raise extra funding through a shares issue.
As announced this morning, the estate agency giant is seeking the cash via a £90 million capital raise through an investment by private equity firm and shareholder Alchemy.
This will be via a 66 million share issue on top of a new £75 million loan from its existing lenders with a four-year term.
“Catalist Partners notes Countrywide’s announcement this morning,” a statement issued this morning says.
“As one of the company’s largest shareholders, Catalist strongly opposes this unnecessary, ill-judged and dilutive transaction which, while clearly a very attractive deal for Alchemy, is destructive for shareholders and only serves to fund the continuation of a flawed “back to basics” business plan.”
Catalist has been hoovering up shares in Countrywide, a story The Negotiator broke in July.
The investment firm is a vehicle for Robin Paterson, the senior industry figure who owns the Sotheby’s International Realty franchise in the UK but was instrumental in growing Hamptons International and Barnard Marcus during the 1990s.
Paterson has been a vocal opponent of the way Countrywide has been run in recent months, and has threatened a likely hostile takeover unless the company begins performing better.