Beazer approached to go private

by Carol Millett



City sources say housebuilder Beazer Homes has been approached by a venture capitalist with an offer to take the company off the stock market.

Beazer Homes which demerged from Hanson in 1994 has received a cool reception from the stock market and has a PE ratio of just five.

A City source said : "Beazer's share price has gone from £1.75 to £1.20 in the five years since its demerger but its profits have gone up from £55m to £94m and its net assets and land bank exceed the current share price."

A City analyst said: "It's a super-slick operation. Going private should be an attractive option to the management, which is not being rewarded adequately for its efforts. They would reap far more reward going private."

Beazer is said to be considering the offer. However, no-one at the company was available to comment on the story.

One industry insider claimed that venture capitalists had approached several other housebuilders. "I would be surprised if they haven't approached every major housebuilder," he said.