Morgan tables Redrow offer

Redrow chairman Steve Morgan has made a cash offer to buy the listed house builder and take it private.

The offer was announced on the London Stock Exchange on Friday morning and is made through Morgan's Bridgemere Securities along with Toscafund Asset Management and Penta Capital.

A statement to the stockmarket said Bridgemere and Tosca / Penta made 'an initial approach to the independent directors of Redrow and are considering the possibility of making an all cash offer for Redrow of 152p per share. This approach is at a preliminary stage and no decisions have yet been made. There can be no certainty that an offer will ultimately be made for Redrow.'

The potential offer price represents a 23.8% premium to the 90-day average of 122.7p per share.

Bridgemere holds 40.4% of Redrow shares and Toscafund Asset Management LLP has 13.8%. Bridgemere and Tosca / Penta are not yet considered joint offer parties but are in discussions with the Takeover Panel and Redrow about a joint offer.

The parties now have until 5pm on 28 September to announce either a firm intention to make an offer for Redrow or that they do not intend to make an offer.

Morgan founded Deeside-based Redrow in the 1970s and resumed control after a period away from the business a couple of years ago. He ended the firm's loss-making years and refocussed on higher-end product.

Redrow shares were up 4p to 155p by mid-morning on Friday.