Chairman of housebuilder Redrow has ‘terminated’ plan to make an offer for the company through his investment fund

Steve Morgan, chairman of housebuilder Redrow, has abandoned his plan to takeover the company through his investment fund Bridgemere.

In a statement to the City this afternoon, ahead of the 5PM deadline for Morgan to decide whether to make an offer to takeover the housebuilder, Bridgemere and its investment partners Toscafund Asset Management and Penta Capital said it had “terminated” its takeover plans.

The statement said: “Each of Bridgemere, Toscafund and Penta confirms that discussions with Redrow and between themselves in relation to the possible offer have now been terminated and that none of them has a current intention to make an offer for Redrow.”

The move comes two weeks after Redrow extended its initial deadline for Morgan to make an offer for the company.

Redrow said last month that it had received an initial approach from Bridgemere with regards a possible cash offer of 152 pence per Redrow share, equivalent to around £562m.

Bridgemere - which is controlled by Morgan - already owns 40.4% of Redrow.

According to reports, Morgan was seeking the support of major shareholders for an improved offer of as much as 170p a share. However, that move has now been dropped.

Redrow shares were at 162.89p a share late on Thursday, giving the company a market value of £602m.