Redrow slumps as chairman offloads shares
Redrow shares tumbled after The Steve Morgan Foundation - a charitable trust founded by the housebuilder's chairman - and Morgan's investment vehicle, Bridgemere Securities, sold 25.9m existing ordinary shares at 590p each, representing around 7% of the issued share capital.
FTSE 250
19,884.73
17:14 28/03/24
FTSE 350
4,383.21
17:14 28/03/24
FTSE All-Share
4,338.05
16:50 28/03/24
Household Goods & Home Construction
13,053.56
17:14 28/03/24
Redrow
665.50p
16:40 28/03/24
Bridgemere and the trust sold 12.95m shares each and following the sale they will hold 25.5% and 7%, respectively.
The placing was conducted through an accelerated bookbuild, with Barclays acting as sole global coordinator and bookrunner, and Peel Hunt as co-bookrunner.
Following the placing, Morgan and his closely associated vehicles will continue to hold around 33% of the issued share capital of Redrow and remain its largest shareholder.
At 0845 BST, Redrow shares were down 7.8% to 582.40p.