Beazer float to net 413m pounds for Hanson

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The Independent Online
HANSON will receive pounds 413.4m from the flotation of its UK housebuilding subsidiary Beazer, for which public applications are due next Friday, writes Tom Stevenson.

The company confirmed yesterday that the offer of shares will raise a further pounds 50m of cash to fund Beazer's land-buying programme, valuing it at pounds 463m.

A total of 280.8 million shares are to be issued, with one quarter available to the public at 165p a share. The pricing of the issue was widely expected by analysts even though it puts the shares on a lower rating than many of Beazer's peers.

On the basis of profits for the year to September 1993, shares are valued on a p/e ratio of 14.5p.

Beazer Homes will be the UK's fourth largest quoted housebuilder with planned completions of about 7,000 homes. Last year it sold 4,805 houses, putting it level with Barratt and behind Tarmac and Wimpey.

The company grew rapidly during the 1980s through acquisitions before being bought by Hanson in 1991 as part of the conglomerate's acquisition of Beazer, which included a US housebuilding operation and construction business.

A notional dividend of 5p a share implies a gross yield of 3.8 per cent.