Market wrap: San Fran suitor sends Countryside soaring

Shares in Countryside Partnerships, a FTSE 250 housebuilder, rose by almost a fifth on Monday after the company received an unsolicited takeover approach from one of its shareholders. Inclusive Capital Partners, a San Francisco-based investment adviser which owns a 9.2% stake in Countryside, said this morning that has made two approaches to the company regarding a possible 295p per share offer over the past two months. The most recent of those approaches was on 17 May. Countryside told Inclusive last week that its board “would not engage… or provide access to due diligence materials”. In its statement on the approach, Inclusive said the offer would be at a premium of 31.4% to Countryside’s share price on 27 May, adding that the company “would be in a better position to turnaround its business as a private company rather than as a public entity, where near-term profitability and consistent earnings results are expected by investors”. Countryside’s shares ended the day as the sharpest riser in the FTSE 350, up by 18.6% at 283p. Even with that rise, the stock has lost half of its value since a peak of 568p last August. In its own statement on the issue, Countryside advised shareholders to take no action over the approach.  “In evaluating the proposals, the board believes that they do not reflect the opportunity for shareholder value creation taking into account Countryside’s differentiated market position and attractive business model,” the board said, pointing to what it called the company’s “clear strategy”, “significant cash generation from legacy asset sales” and “considerable intrinsic value in the land bank”. To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews Image © Martin Lee/Shutterstock