Founder closes the door on taking Redrow private
Tuesday 26 February 2013
Redrow's founder Steve Morgan has appeared to rule out another attempt to take the housebuilder private after the Takeover Panel thwarted a £610m attempt last autumn.
The Wolverhampton Wanderers owner's bid to claim control in tandem with Toscafund and Penta Capital – together representing 57 per cent of the shares – was blocked amid concerns over the interests of smaller investors.
Since the original approach – pitched at 152p and then improved to 165p – Redrow's stock has soared along with the rest of the sector as the Bank of England's Funding for Lending scheme helps mortgage seekers. The shares dropped 6.9p to 188.9p but still stand well above the offer price at 190.15p.
Mr Morgan said: "We are in a different time now – the stock has been substantially re-rated. We'd gone through 12 months when we were trading at a discount to net-asset value and now we are at a premium. The times have a'changed."
Pre-tax profits for the six months to 31 December were up 50 per cent to £23m, ahead of City forecasts. The company is also pumping money into its burgeoning London business, which has 700 plots with a development value of £450m.
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