Wolves owner set to take housing group Redrow private
REDROW, the publicly listed housing group headed by Wolverhampton Wanderers owner Steve Morgan, could be set to re-enter private hands.
The property and leisure group Bridgemere Securities, owned by Mr Morgan has made an approach to the board of the housing group with a potential offer.
Toscafund Asset Management, which holds 13.8% of the housing group’s shares, together with Penta Capital are allied with Bridgemere should the offer be forthcoming.
Bridgemere is already a significant shareholder in Redrow and it owns the Wolves club. Analysts have been expecting Mr Morgan to make a move to takeover Redrow for sometime ever since he seized power in the boardroom in March 2009.
In a statement to the London Stock Exchange today Bridgemere said it had noted the recent price fluctuations in Redrow shares and confirmed it had made an initial approach to the board.
The cash offer is based on a price of 152p per Redrow share. It said the approach was at a preliminary stage and there could be no certainty yet that an offer would be forthcoming.
The 152 p proposal represents a significant premium of 23.8% to the average Redrow share price of 122.7p and Bridgemere said this offered “strong value” considering Redrow shares had been trading at a “significant discount”.
Bridgemere currently holds 40.4% of the entire issued share capital of Redrow.
Bridgemere and Tosca / Penta now have until 5pm on September 28 to announce either a firm intention to make an offer for Redrow or that they will not be proceeding with the matter.
In a statement, Redrow said: “Redrow plc notes the announcement by Bridgemere Securities, Toscafund Asset Management and Penta Capital.
“Redrow confirms that it received an initial approach yesterday evening from Bridgemere, Tosca and Penta regarding a possible cash offer of 152p per Redrow share.
“The board will now establish a committee of independent directors to consider the approach.”
It said shareholders were advised to take no action at this time.