Browning West Calls for Countryside Properties to 'Let Partnerships Prosper'
LONDON, Dec. 2, 2020 /PRNewswire/ -- Browning West, LP ("Browning West"), the third largest shareholder in Countryside Properties PLC ("Countryside" or "the Company"), with a 9.4% stake and a long-term investment horizon, is calling for the Board of Directors to immediately take certain actions that it believes will enhance outcomes for all of Countryside's stakeholders, as well as ensure that the Company can continue to fulfil its important role in the community by addressing the UK's chronic housing shortage in a sustainable manner. This public call to action comes only after a months-long private dialogue between Browning West and Countryside revealed a reluctance on the part of management and the Board to address the Company's significant deficiencies or consider meaningful opportunities identified by Browning West to significantly enhance shareholder value.
Countryside operates two divisions today, Partnerships and Housebuilding. Browning West believes that Partnerships is the Company's "crown jewel" and is calling for the Board to take the following steps to Let Partnerships Prosper:
- Immediately Appoint Browning West's Usman Nabi to the Board: Mr. Nabi should be added to the Board to bring specific financial, M&A, and capital allocation expertise, as well as to co-lead the search for a new Chair of the Board.
- Initiate a Search to Replace Countryside's Chair: The Board should immediately initiate a search for current Chairman David Howell's replacement, seeking candidates with the following key attributes: (i) experience as a CEO, (ii) a track record of value creation, and (iii) evidence of success in M&A and capital allocation.
- Task the New Chair with a Mandate to "Let Partnerships Prosper": The new Chair will work with the reinvigorated Board to urgently address three key issues: (i) reassess the current operating plan to see if there is an opportunity to improve return on capital employed and margins in 2021 and 2022, (ii) initiate a process to thoughtfully execute the separation of Housebuilding to create a stand-alone Partnerships business, and (iii) construct a prudent capital allocation policy that significantly reduces the risk of any future equity offerings and maximises total long-term returns for all shareholders.
Browning West has requested that the Board establish a new committee, co-led by Mr. Nabi and one of the Company's current non-executive directors, to oversee the search process to identify Mr. Howell's replacement. Browning West believes that taking these steps will protect shareholders from downside risk, enhance long-term returns, sharpen management's focus, and ensure that Countryside can continue to fulfil its important role in the community by addressing the UK's chronic housing shortage in a sustainable manner.
Browning West has today launched www.letpartnershipsprosper.com, a website which details its outlook on the Company and the requests it has made to the Board, provides links to various letters sent by Browning West to Countryside's Chairman and Board of Directors over the preceding months, as well as presents Browning West's value creation framework by way of a detailed investor presentation. This website will be updated with more information and additional content as the situation develops further.
Investor Contact:
Cas Sydorowitz, Georgeson
[email protected]
+44 20 7019 7002
Media Contact:
Andrew Honnor and Rob White, Greenbrook
[email protected]
+44 20 7952 2000
About Browning West, LP
Browning West is an independent investment partnership based in Los Angeles, California. The partnership employs a concentrated, long-term and fundamental approach to investing and focuses primarily on investments in North America and Western Europe.
Browning West seeks to identify and invest in a limited number of high-quality businesses and to hold these investments for multiple years. Backed by a select group of leading foundations, family offices, and university endowments, Browning West's unique capital base allows it to focus on long-term value creation at its portfolio companies.
About Usman Nabi
Mr. Usman Nabi is the Founder, Managing Partner and Chief Investment Officer of Browning West. Prior to founding Browning West, he was Senior Partner at H Partners Management, LLC, a New York-based investment management firm. Mr. Nabi also held previous roles as an Analyst at Perry Capital LLC and as a Private Equity Associate at The Carlyle Group. He began his career as an Investment Banking Analyst at Lazard in the firm's Mergers & Acquisitions group.
Currently, Mr. Nabi serves on the Board of Directors of Domino's Pizza Group plc as a Non-Executive Director and a member of the Nomination Committee, where he also co-led the search processes for both the Chairman and CEO positions.
Previously, Mr. Nabi served on the Board of Directors of Six Flags Entertainment Corporation, where he was Chairman of the Nominating & Governance Committee, a member of the Compensation Committee, and where he also co-led two CEO search processes. He also served as Six Flags' Executive Chairman during its emergence from bankruptcy in 2010. Additionally, Mr. Nabi served on the Board of Directors of Tempur Sealy International Inc., where he was Chairman of the CEO Search Committee, a member of the Nominating & Corporate Governance Committee, and a member of the Compensation Committee.
Mr. Nabi earned his B.A. from Harvard College and his M.B.A. from Stanford University's Graduate School of Business.
Disclaimer
Neither the content of the www.letpartnershipsprosper.com website, nor the content on any website accessible from hyperlinks on that website for any other website, is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company. For the avoidance of doubt, neither this announcement, nor the website itself, constitute an offer to purchase or sell or a solicitation of an offer to purchase or sell any securities or other investments in the Company, or any other company, by Browning West or any fund or other entity managed directly or indirectly by Browning West in any jurisdiction. The content of both this announcement and the website do not consider the investment objective, financial situation, suitability, or the particular need or circumstances of any specific individual who may access or review this announcement, and may not be taken as advice on the merits of any investment decision. Any person who is in doubt about the matters to which this announcement relates should consult an authorised financial adviser or other person authorised under the Financial Services and Markets Act 2000.
This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services) are forward-looking statements. When used herein, words such as "anticipate", "believe", "estimate, "expect", "intend", "plan" and "project" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These forward-looking statements speak only as at the date of this announcement. No representation or warranty, express or implied, is given by Browning West or any of its officers, employees or agents as to the achievement or reasonableness of, and no reliance should be placed on, any projections, estimates, forecasts, targets, prospects or returns contained herein. Browning West expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000 or other applicable laws, regulations or rules.
SOURCE Browning West, LP
