Newly created shell company Hightower Construction is poised to buy a groundworks contractor.

The firm, which floated on the alternative investments market on 1 June, confirmed the decision in a statement on the stock exchange last week.

The statement said: “The company is in negotiation to acquire a groundworks contractor and the discussions may result in an acquisition.”

Hightower was set up as an acquisition vehicle, with the aim of buying a range of housebuilding specialists and creating an outsourcing service for housebuilders, without having to manage a landbank. The firm claimed the demand for low-cost housing would lead to increased use of specialist businesses.

The statement said: “The company seeks to benefit from growth in the sector while avoiding the working capital costs of acquiring and maintaining a land bank.”

The company seeks to benefit from growth in the sector

Hightower statement

Hightower was set up by businessman and chairman Haresh Kanaba. Its management team also includes Aidan Wright, a non-executive director with 30 years’ experience in construction.

The firm raised £430,000 when it floated on AIM; shares were placed at a 5p price.

The stock stood at 9p earlier this week.