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 “was not considering other options.”
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 £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 £12.8m, up from £4.7m in the 2004/05 financial year, following the sale of its north-west division. Group turnover was £280m, up 33% on the previous year.