The LSL Property Services share price has moved by 1.2% over the past week and is currently trading at 211.5p.
LSL’s share price dropped on Friday, erasing some of the gains made a day earlier.
LSL’s share price hit 215p on Thursday afternoon, amid speculation that a deal to acquire Countrywide could be back on, while news broke that the firm had shut down its acquisitions department.
Helen Buck, executive director, estate agency for LSL Property Services plc, said in a statement: “The acquisition of lettings books is no longer a strategic priority for the group.
“We confirm we are in discussion with two members of the acquisitions team and we are working closely with them to try and secure alternative opportunities within the LSL Group of companies”.
Meanwhile, it is rumoured that LSL, which owns the estate agency chains Your Move, Reeds Rains and the London brand Marsh & Parsons, may have revived discussions with Countrywide. A tie-up would create a company with 14,000 staff and 1,000 estate agency outlets
The group pulled out of acquisition talks last March, sending the share price in Countrywide crashing.
Shares in Countrywide plunged in March by 54% to 76p in response to the news that the talks had collapsed, while LSL shares at the time fell 29% to 174p.
Countrywide has more than 850 branches across the UK and employs 9,500 people. But it started closing outlets last year, amid mounting losses and a heavy debt burden.
Property Industry Eye last week asked LSL for comment on speculation that merger talks could be back on, but David Stewart, group CEO of LSL Property Services plc, replied: “We do not comment on market speculation.”
Comments (3)
One positive note arising from CWD’s performance this summer it should hasten the departure of Creffield &Long ,the dynamic duo from the BODS
They can leave clutching their goldplated pensions with a blaze of reflected glory by default stating “Back to Basics “has worked which might bury their disastrous handling of CWD over the years incurring debt unnecessarily,asleep at the wheel hurtling from 1 crisis to the next
Agreed CWD still treading water despite the income boost they should receive from the current high number of sales being reported however they do need to be replaced by fresh stock and that will present a challenge I suspect as we enter some pretty uncertain times. On a separate note their 2019 annual report declared around 760 Branches were still trading and around 7500 staff employed ( excluding LSH ) and not the figures reported in the lead article but knowing the tardy nature of CWD in updating their websites with any news less than a year old it’s an easy mistake to make.
“Countrywide has more than 850 branches across the UK and employs 9,500 people. But it started closing outlets last year, amid mounting losses and a heavy debt burden, and recently sold its commercial property arm, Lambert Smith Hampton, for £38m.”
CWD hasn’t sold LSH.far from it .That is why they didn’t merge earlier in the year with LSL .The monies from the sale required to reduce the overall debt as CWD under pressure from banks. The proposed buyer the Dane without any bacon failed to come up with the goods and the CWD BODS naive to think he was still on the premises when he did not have the resources available to see a deal through hung on hopefully for months .
CWD on the backfoot desperate for any solution to their plight .
LSL quite wisely walked away from the merger
LSH is still being hawked around the market like a sack of spuds still
Price achievable for LSH nothing like £38m more like less than £25m if saleable at all in today’s climate
However the pressure on CWD to reduce debts has possibly been reduced a little due to their performance over the last few months which has been excellent with increased revenue arriving through the door.
Some of the branches of Dixons in the W. Midlands have literally cleared the shelves.
Maybe rumours of a merger have been started as a counter to the approach made by Robin Paterson (Catalyst) to the BODS at CWD
Exciting times ahead for CWD a new regime urgentally need to capitalise on the momentum . No doubt there will be other suitors but a merger with LSL very unlikely