Small housebuilders rush to exit the City | News

Who’s buying whom
Sellers	Buyers
Furlong Homes	Gladedale
The Furlong family, led by 64-year-old company chairman Jim Furlong, have agreed to sell their 39.7% stake in the business, which Furlong founded in 1980. Jim, one of 10 East-end brothers involved in construction, said the family will be keen to get a stake when buyer Gladedale is floated on the main market. Gladedale has irrevocable undertakings for 53.2% of the east and north London housebuilder’s issued share capital.	Italian entrepreneur Remo Dipre wants southern-based Gladedale to become a national housebuilder through the acquisition of small to medium-sized firms. Gladedale already owns 13.5% of Furlong and has irrevocable undertakings on the family’s shares at a price of 292p a share. Sources say Dipre, who formerly ran Fairbriar Developments, is planning a float on the main market in two years.

Ward Holdings	Management buyout vehicle, Kealoha
Ward Holdings’ 76-year-old executive chairman Denis Ward has been in negotiations with a buyout team since the spring. The Kent-based housebuilder and plant-hire company reported turnover up 10% to £21.1m for the six months to 30 April this week. Pre-tax profit was up 16% to £2.58m. Ward’s daughter and son-in-law, also directors, have agreed to sell their shares to the team unless a higher offer comes in.	A three-strong management buyout team led by Ward chief executive David Holliday is bidding £34.2m in cash for Ward Holdings. It already has irrevocable undertakings for 21.6% of the shares and was expected to announce that it had secured more this week. Holliday, 52, is a former chief of Admiral Homes. The team is backed by venture capitalist Phildrew Ventures, which will take a 77.3% stake in the firm.

Linden	Linden management
Surrey-based brownfield specialist Linden was forced to announce that it was in preliminary talks with a management buyout team after its shares rose 39p to an 18-month high of 291.5p last Thursday, valuing the company at £73.2m. The shares had fallen 19p to 272.5p on Monday. It is the second largest of the housebuilders currently involved in talks. Fairview, valued at just under £300m, is also in talks with its management.	Chief executive Philip Davies has put forward plans for a management buyout and is hoping to finalise a proposal in the next few weeks. Davies, 49, was chief executive of Alfred McAlpine Homes for seven years before joining the company. Linden, which floated only three-and-a-half years ago, made £10.8m pre-tax profit last year, a rise of 25%. It sold 702 homes and expects to sell 1000 a year by the end of 2001.