Inclusive Capital, the US fund bidding for Countryside Partnerships PLC (LSE:CSP), has welcomed calls from the housebuilder’s largest shareholder to put the business up for sale via an auction.
Browning West, another US fund that owns 15.3% of Countryside, wrote to the board of the housebuilder at the weekend urging it to start a sale process and begin a strategic review.
In-Cap said it was “supportive of any proposal from shareholders that the board of Countryside run a formal sale process for the company and would welcome the opportunity to participate in any such process”.
Jeffrey Ubben, In-Cap’s managing partner, added: “As noted in our previous announcement, on 30 May 2022, we have attempted to engage with the board of Countryside in good faith and have been rebuffed each time despite offering to provide selling shareholders an attractive selling option at a meaningful premium.
“A robust auction process, with proper due diligence, will allow In-Cap to put its best foot forward.”
In-Cap, which owns 9.3% of Countryside, had a second offer of 295p cash per share and worth around £1.47bn turned down by the board of the housebuilder last week.
Countryside said the approach materially undervalued the business and did not take into account its strength in mixed tenure or its asset-light strategy.
In its letter, Browning West said that the company needed to undertake a strategic review and that it would perform better privately owned or as part of a larger business.
Browning West founder Usman Nabi wrote: "I urge the board to immediately undertake a thorough process to consider all strategic alternatives for the company," Reuters reported.
The activist fund has been critical of Countryside for some time and has repeatedly called for it to be broken up.