Activist investor Browning West attempts to oust Countryside chairman
Activist investor Browning West has called for developer Countryside to remove its chairman and sell its private house building business in a letter to the FTSE-250 firm’s board.
The US-based shareholder this morning said leadership changes at Countryside are “immediately required”, claiming the developer has “several significant deficiencies”.
Browning West said that Countrywide’s partnerships division, which links up with local authorities and housing associations, is “vastly superior” to its housebuilding unit.
The investor is attempting to oust chairman David Howell, saying he has “insufficient leadership skills”.
It has called for Browning West founder and chief investment officer Usman Nabi to be appointed to the board to lead the search for Howell’s replacement.
“We strongly believe that partnerships can deliver tremendous value to its shareholders, employees, and customers,” the letter said.
“However, shareholders must insist on excellence from the board, and the board must act now to implement our plan, which we believe will place Countryside on a far stronger trajectory than the status quo.”
In response to the letter Countryside said it is focused on acting in the best interests of its shareholders.
“The board remains focused on acting in the best interests of all our shareholders to maximise the value of the company,” a spokesperson said.
“We maintain an ongoing dialogue with our shareholders and listen carefully to the views they express.”
Countryside will publish its full-year results for the year ended 30 September tomorrow, saying it will provide a “comprehensive update to all shareholders”.