黑洞社区

The largest shareholder in listed housebuilder Countryside Partnerships has joined calls for the firm to start a sale process, despite the business rebuffing an approach to buy it last week.

黑洞社区鈥檚 sister title Housing Today has independently confirmed reports over the weekend from news agency Reuters that Browning West has written to Countryside requesting it begin a formal process to consider 鈥渟trategic alternatives鈥� for the company, including a sale.

Browning West holds more than 15% of Countryside shares, and its intervention means that, alongside fellow shareholder Inclusive Capital, which last week went public with its 295p per share bid for Countryside, at least a quarter of the owners of the business are now favouring a sale.

Countryside said it was not commenting on the letter from Browning West, further to its statement last week rejecting Inclusive Capital鈥檚 offer, in which it said the bid 鈥渕aterially undervalued the Company and its prospects鈥�.

Reuters, claiming sight of the letter from Browning West founder Usman S. Nabi to Countryside鈥檚 board, said Nabi cited 鈥渕istakes鈥� made by the firm, such as the time taken to replace the former chair and chair executive of the business. It said: 鈥淚 urge the board to immediately undertake a thorough process to consider all strategic alternatives for the company,鈥� claiming that there had been a 鈥渟ignificant destruction of shareholder value鈥�.

A previous intervention by Browning West, in 2020, led to the departure of the former chair David Howell, and instigated a review which ultimately led to the decision to focus the business entirely around partnerships housebuilding, rather than a blend of traditional private and partnerships building.

Inclusive Capital issued a statement welcoming Browning West鈥檚 letter. Jeffrey Ubben, founder and managing partner of Inclusive Capital, said: 鈥淲e have attempted to engage with the board of Countryside in good faith and have been rebuffed each time despite offering to provide selling shareholders an attractive selling option at a meaningful premium.

鈥淎 robust auction process, with proper due diligence, will allow In-Cap to put its best foot forward. All other shareholders can decide for themselves from the fully informed options in front of them.鈥�

Countryside鈥檚 share price has been in the doldrums since a January profit warning which prompted the departure of the chief executive Iain McPherson.

In April the firm鈥檚 chair and interim chief exec John Martin (pictured, right) blamed the poor performance on a too rapid expansion and loss-making in its modular manufacturing facilities.

Last week Countryside said, in response to Inclusive Capital鈥檚 offer, that: 鈥淭he Board is confident that, with a clear strategy in place following the operational review announced on 7 April 2022, Countryside has a strong platform to deliver value in excess of the Proposals.

鈥淐ountryside shareholders are strongly advised to take no action in relation to the approach from Inclusive Capital.鈥�

Browning West declined to comment.