Redrow secures takeover panel extension as firm bids fail to emerge

British housebuilder Redrow Plc (LON:RDW) said that at its request the UK Takeover Panel extended until 18 October the deadline for Bridgemere Securities Limited in concert with funds Toscafund Asset Management LLP and Penta Capital LLP to make a firm offer for the company.

Bridgemere, a company owned by Redrow’s chairman Steve Morgan, together with Tosca and Penta proposed on 31 August to take over Redrow at GBP1.52 (USD2.50/EUR1.90) a share in cash and initially had to announce a decision regarding a firm offer by 4 October.

Already owner of some 40% in Redrow, Bridgemere has said that the buyout proposal represents a strong value considering the performance of Redrow’s share in recent years when they traded at a substantial discount to the reported net asset value over extended periods of time.

The proposed price is a premium of 23.8% to Redrow’s 90 trading-day volume-weighted average and is higher than Redrow’s December 2011 reported net asset value of GBP1.50 per share and than its adjusted December 2011 reported net asset value of GBP1.46 a share, the buyer has said.

Toscafund and Penta are not yet considered joint offerors and are currently discussing with the UK’s Takeover Panel and Redrow their potential participation in the buyout offer, Bridgemere said in August.
Toscafund is also a Redrow shareholder with a stake of about 13.8%.

In its current statement, Redrow said that the 18 October deadline for a firm bid could be further extended and that there was no certainty that an offer would emerge.

According to Reuters calculations, the current proposal values the target firm at GBP562m.