Countryside snapped up by rival for £1.25bn

COUNTRYSIDE Partnerships has been snapped up by a rival for £1.25bn.

The essex- based housebuilder will be folded into Vistry’s business alongside brands including Bovis homes, Linden homes and Drew Smith. Vistry will pay 249p for each Countryside share.

The deal values Countryside 9.1pc higher than its closing price on Friday and sent shares up 5.2pc, or 11.8p, to 240p.

Countryside chairman Douglas hurt said the tie-up would create a ‘leading’ business in the housing sector.

Vistry chief executive Greg Fitzgerald said the strength of Countryside would complement its existing brands and added that the combined group would have the ‘scale and expertise’ to boost its growth and deliver ‘ much needed affordable housing’ across england. Vistry shares rose 1.9pc, or 14p, to 755p.

Countryside’s sale comes after significant pressure from investors, who wanted it to execute a turnaround in private hands. Its shares have been slashed in half in the past 12 months.

And the deal comes amid a bleak outlook for the housing market, with interest rates climbing and the cost of building soaring.

Victoria Scholar, of investment service Interactive Investor, said the combined group would be in ‘better stead’ to navigate the challenges than going it alone.

Countryside put itself up for sale in June after rejecting a swoop by San Francisco-based investment fund Inclusive Capital Partners (In-Cap), one of its largest shareholders.

After the rejection, Countryside was under pressure from investors – including its biggest shareholder Browning West, which called for it to go private or join a larger business – to push for a sale. Countryside said in June: ‘A meaningful number of shareholders believe that the company would be in a better position to capitalise on the opportunities ahead as a privatelyowned company or as part of a larger business and have asked the board to actively seek offers for the company.’

In-Cap said yesterday it supported the deal and would end its pursuit of the housebuilder.

Vistry is hoping a takeover will allow it to reap the benefits of a housebuilding boom that is expected under Liz Truss, who has vowed to cut red tape in the sector.

The takeover creates a group employing more than 5,000 and Vistry said it will target combined annual profits of more than £800m.

Fitzgerald will continue as chief executive of the enlarged group, with chairman Ralph Findlay also holding on to his job. Countryside’s finance boss, Tim Lawlor, will join Vistry as its chief financial officer. Vistry’s finance chief, earl Sibley, will become chief operating officer.