Chief executive gains pounds 4.5m from buyout

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The Independent Online
THE CHIEF EXECUTIVE of a housebuilding company is expected to boost his income to more than pounds 4.5m a year by taking his company private and increasing his equity stake to 71 per cent, writes Andrew Verity.

Bill Ainscough, who currently has a 23 per cent stake in Wainhomes, will benefit from an pounds 88m buyout of the company backed by Uberior, an investments division of the Royal Bank of Scotland.

Analysts estimate that Wainhomes will pay a maximum of pounds 8m a year to service the debt used to finance the buyout, leaving shareholders with earnings of over pounds 6m.

Analysts said Mr Ainscough was making a virtue of the stockmarket's undervaluation of housebuilding companies.

"It's a superb deal for Bill Ainscough and it reflects the market's stupidity about housebuilders' prospects," said one.

Harrock, the buyout vehicle, yesterday offered 140p a share to Wainhomes shareholders, a premium of 22 per cent to the company's closing price on Tuesday. It already has acceptances from 31 per cent of Wainhomes shareholders.