1st Oct 2014 06:58
LONDON (Alliance News) - Estate agency Countrywide PLC said it has decided to accelerate its capital returns policy and will Wednesday commence a share repurchase programme for up to GBP20 million.
The company said it continues to target a dividend of between 35% and 45% of 2014 reported group profits after tax but before any amortisation.
Countrywide said it has entered into an arrangement with Jefferies International Ltd to enable the investment company to make purchases of shares starting Wednesday and ending on March 31, 2015, including on a discretionary basis during Countrywide's close periods.
The objective of the programme is to reduce the issued share capital of Countrywide, and the shares purchased will be held as treasury shares, it said.
The company said given the current shareholding of affiliates of Oaktree Capital Management (UK) LLP in Countrywide, a market purchase by Countrywide of its own shares could increase the percentage of voting rights in which Oaktree is interested to more than 30%, but not more than 50%.
As a result, this could "trigger a mandatory offer under Rule 9 of the City Code on takeovers and mergers," the company said. However, it added: "Countrywide would not carry out a market purchase of its own shares having such an effect without prior consultation with the Panel on Takeovers and Mergers and obtaining further shareholder approval."
Countrywide added it has no unpublished market sensitive information.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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