UK: Redrow founder Steve Morgan plots takeover move
The boss of one of the UK’s biggest housebuilders was today involved in a �560 million move to win back control of the company he founded in 1974.
Steve Morgan, who is owner of Wolverhampton Wanderers Football Club, returned to Redrow as executive chairman in a boardroom coup in 2009 and has been successful in reviving its fortunes since then.
His Bridgemere group, which holds a 40% stake in Redrow, has now tabled a preliminary takeover approach valuing the Flintshire-based housebuilder at 152p a share, equivalent to around �562 million.
Redrow has formed an independent committee of directors to consider the proposal, which is backed by another major shareholder in hedge fund Tosca.
While the offer is only slightly higher than Redrow’s closing price last night, Bridgemere said it represented a premium of 24% on the average price seen over the last three months.
Bridgemere recently increased its shareholding in the housebuilder from 29% as part of an �80 million fundraising by Redrow to bolster its London division.
Mr Morgan set up Redrow as a small civil engineering business in 1974 with the help of a �5,000 loan from his father. The business floated on the stock market in 1994 before Mr Morgan stepped down as chairman in 2000.
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He returned to the company three years ago after it posted its worst ever results and has boosted its performance by placing traditional family housing at the forefront of its offer.