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Wednesday, 24 January, 2001, 09:52 GMT
Persimmon offers 538m for Beazer
New houses
Britain's house builders: Shake-up underway
Persimmon, the UK housebuilder, has said it is offering 537.5m ($792m) for rival Beazer Group.

In a statement, Persimmon said its offer was 109 pence in cash and 0.3086 new Persimmon shares for each Beazer share.

The offer, which Persimmon said was final, values each Beazer share at about 188p.

"The Persimmon offer delivers superior value to Beazer shareholders," Persimmon chairman Duncan Davidson said.

"It contains a substantial cash element and also offers an opportunity to be part of the UK's leading housebuilder.

"As shareholders in the enlarged Persimmon group, Beazer shareholders would benefit from Persimmon's proven record for integrating acquisitions and delivering value to shareholders."

Bryant agrees TW move

Beazer shares closed at 176.5p on Tuesday, giving it a market value of 521m.

Persimmon's move is the latest of several in the UK construction industry.

On Monday, Bryant agreed to be taken over by Taylor Woodrow.

Bryant and Beazer had in December unveiled their own - now discarded - plans to merge.

Analysts said the Bryant-Taylor Woodrow deal effectively ended any hopes Beazer might have had of going it alone.

Cost savings

Persimmon on Wednesday said buying Beazer would produce pre-tax cost savings of at least 20m a year.

It discounted the possibility of any other group entering the competition for Beazer, saying no one else would find the same level of synergies.

Persimmon said that with Beazer it would become the UK's largest housebuilder with turnover of about 1.6bn, operating profit of 209m, a land bank of 58,000 plots and a strategic land portfolio of more than 19,000 acres.

Persimmon shares fell 12p in early trading on Wednesday to stand at 244p at 0949 GMT. At the same time, Beazer stock was up four pence at 180.5p.

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See also:

19 Jan 01 | Business
Persimmon poised for Beazer bid
19 Jan 01 | Business
Persimmon to meet with Beazer
15 Jan 01 | Business
Persimmon to enter Beazer race
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Taylor Woodrow ups bid for Bryant
11 Jan 01 | Business
Taylor Woodrow bids for Bryant
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