Shares in Countrywide fell back as the City reacted to news that the company has not yet sold its commercial agency business, Lambert Smith Hampton.
Countrywide announced at the end of November that it had agreed to sell LSH to John Bengt Moeller for £38m in cash and with the sale due to complete on December 31.
The deal appeared to move fast with shareholders approving the transaction on December 27.
However on Friday, Countrywide told the City that the deal has not yet gone through.
Its statement said: “Completion of the transaction has been delayed due to John Bengt Moeller being indisposed during January and due to logistical difficulties relating to the transfer of the requisite completion monies.
“We have been reassured by Mr Moeller that completion is imminent.
“The Company continues to work with Mr Moeller to resolve this situation urgently and is taking all necessary steps to achieve completion as soon as possible.”
The sale of LSH has been regarded as crucial to Countrywide’s fortunes.
Countrywide itself said when the deal was announced last November that it would “significantly improve Countrywide’s capital structure” and allow it to reduce its debt, and also mean that it could concentrate on its core residential business.
John Bengt Moeller, 60, and living in Monaco, is buying LSH as a private individual. He is founder of Great Global Holdings, a holding company for a number of UK and international companies dealing in commercial property.
Countrywide shares on Friday at one time were down by over 5%, but picked up to finish 2% down at 356p.
Comments (5)
Welcome to agency ……… buyers not coming up with the money on time – nothing new there……………….
““We have been reassured by Mr Moeller that completion is imminent.”
Whenever I heard that sort of statement in relation to the purchase of a property, it was almost guaranteed that problems would arise, resulting in no completion.
The BODS probably know that but now find themselves between a rock and a hard place having announced the sale to the reassurance of their banks and shareholders. To admit that the sale has gone wrong will raise all sorts of questions about their competence, and there are plenty of those already, scare the banks and annoy the shareholders
I suspect the BODS were forced to issue this statement before it was leaked hitting the share price even further and making them look even more foolish to even the most optimistic investor. Wouldn’t surprise me if the purchase price is either being re-negotiated downwards or the method of payment amended. How about £1m down and the rest later. There may well be a signed contract but expect it not to be as watertight as it should be. What are these inept BODS being paid to do other than continue to shut Branches ( more gone this year looking at Zoopla stats ). Answers here or on a postcard with a view of Monaco on the front! LOL.
“Logistical difficulties relating to the transfer of the requisite completion monies.”
Priceless that;s the best one yet
The dog ate the cheque
You really couldn’t make it up .Breaking the golden rule never do a deal unless you know the buyer has the funds in place .The greenhorns .Perhaps old Jean Micahel Jarre was awaiting the Brexit dividend to kick in and use LSH fees to pay for themselves
Perhaps LSH corporate finance can get him the money ?
Yet another disaster milestone for a set of BODS which seem accident prone at best The banks were no doubt expecting the moneyThey are now between a rock and a hard place
Just when the market was perking up a bit
Perhaps one of Countrywide’s mortgage consultants should have invited the buyer in to show proof of funds and then tried to collar the business themselves……. That’s what they do in the branches when someone is buying a £70,000 flat after all!