Morgan launches bid for Redrow

STEVE Morgan, chairman of quoted housebuilder Redrow, has made an offer for the company valuing it at around £560m.

Using his investment vehicle Bridgemere Securities Mr Morgan has proposed a takeover at 152p a share which he said was a 23% premium to the 90-day trading average of 122.7p.

The shares closed at 151.2p yesterday.

Mr Morgan, who owns Wolverhampton Wanderers, has made the move with two other investors, Penta Capital and the hedge fund Toscafund Asset Management, which holds 13.8% of Redrow shares.

He already owns 40.4% of the Deeside-based business, a stake which increased from 29.2% in May after Bridgemere underwrote a poorly received £80m fundraising.

Under takeover rules the bidders have until September 28 to make a formal offer for the business.

In a statement Redrow said the board will establish a committee of independent directors to consider the approach.

Mr Morgan founded Redrow in 1974 and floated it on the stock market 20 years later. He eventually stepped down from his role as chairman in 2000 but returned to the business in June 2009 as it struggled in the wake of the financial crisis and has subsequently since overseen a turnaround in its fortunes.