Bovis Homes raises 60m in cash call
HOUSEBUILDER Bovis Homes yesterday launched a £60m share placing to take advantage of depressed land values.
Bovis said that its recent half year results showed it had maintained a net cash position of £7m despite the economic turmoil and it was beginning to see a number of opportunities to acquire land for development.
The group placed a total of 12.1m shares – equivalent to 10 per cent of its existing share capital – at a placing price of 500p. The price represents a 1.17 per cent discount to Wednesday night’s closing price of 508p.
The shares were placed by brokers Deutsche Bank and RBS Hoare Govett.
The group said: “Bovis Homes is well positioned within the house building sector to take advantage of an increasing number of short- to medium-term opportunities and to invest in residential land assets.”
Bovis adds its voice to a slew of other property companies who have said stabilitity is returning to the sector. Collins Stewart analyst Imran Akram said: “This move puts further pressure on the indebted housebuilders Barratt and Redrow to raise equity.”
BOVIS?HOMES?
ADVISER: RBS?HOARE?GOVETT
ALEX GARTON
Bovis Homes called on long time brokers RBS Hoare Govett and Deutsche Bank to work on its £60m share placing. Alex Garton (pictured) headed the team at RBS Hoare Govett. Garton, whose interests include owning horses, has been at Deutsche Bank for over ten years.
Deutsche Bank’s team was headed by Martin Pengelley along with Mumtaz Naseem and Edward Sankey. Deutsche Bank has been involved with Bovis since working on its flotation in 1997, which Naseem was involved in.