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 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.