Beazer buys Mowlem Homes

Mowlem has sold its homes division to Beazer for œ31 million - œ1 million more than the target price it announced in March and œ4 million more than book value.

Beazer's offer was selected from among eight bids which were whittled down to a shortlist of four, including Prowting and Countryside (CJ June 23).

Mowlem chief executive designate John Marshall said: 'We are very happy with the deal. It's a good business that has gone for a good price to a good home. And it's been good for our credibility with shareholders because we have done what we said we would do when we announced our rights issue.'

Mowlem announced it would sell its homes business after revealing a œ125 million loss back in March. At the time its borrowings were on course to hit œ100 million - 109% of shareholders funds - but have been cut by the œ61 million rights issue and œ31 million housing deal to 'a very low level indeed'.

Mowlem is still waiting for offers on its City Airport business, which continues to lose money even though it is now attracting 10,000 passengers a week.

A new md - Bernt Willis - has been recruited for Mowlem's German construction business, which lost œ2 million last year.