Housebuilder appoints bank to seek buyers following a strategic review of the business
Housebuilder Linden Homes has appointed NM Rothschild to solicit offers for the business following a strategic review. Rothschild is spending a week sounding out interested bidders.
Commenting on the news Linden chief executive Philip Davies said that it 鈥渨as not considering other options.鈥�
At the time of the review Davies said that the company was not necessarily seeking a sale. However, one City source had previously said that a trade sale was the most likely outcome because the Bank of Scotland had not been paid a dividend since it took a 35% stake in the company in 2001 and as a result would be looking to exit. The bank acquired its shares after it backed a 拢73m management buyout.
Davies said he expects the sale process to take three months.
In June, Linden reported a 178% increase in pre-tax profit to 拢12.8m, up from 拢4.7m in the 2004/05 financial year, following the sale of its north-west division. Group turnover was 拢280m, up 33% on the previous year.
