UK housebuilder Persimmon acquires local rival Hillreed Homes

British homebuilder Persimmon plc (LON:PSN) said on Monday it had taken over regional sector player Hillreed Homes for GBP35.7m (USD57.4m/EUR44.3m) in cash, further reinforcing its presence in the south east of England.

The deal, through which Persimmon’s lays hands on Hillreed Homes’s landbank extending to some 3,400 plots, including strong strategic holdings, is in line with the buyer’s land investment drive aimed at backing growth, Persimmon’s CEO, Mike Farley, noted.

Headquartered in Kent, Hillreed Homes focuses on family housing, which complements the buyer’s Persimmon, Charles Church and Westbury Partnerships brands, the CEO added.

Persimmon was founded in 1972 and is based in York. The principal trading units of the group, which focuses on housebuilding, are Persimmon Homes Limited and Charles Church Developments Limited. Persimmon’s core business is The Persimmon Homes, which builds three, four and five-bed detached properties, two and three-bed town houses, semi-detached houses, bungalows and apartments.

Under the Charles Church brand, the company builds modern and traditional-style premium homes. Persimmon’s The Westbury Partnerships business provides social housing in conjunction with the group’s timber frame making arm, Space4.

Persimmon’s underlying profit before tax surged 65% on an annual basis to GBP98.7m in the first half of 2012 and its operating margin climbed by 320 basis points to 12.2%.

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.