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Housebuilder Abbey receives offer from Gallagher family to take company private

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Charles Gallagher of Abbey

Charles Gallagher of Abbey

Charles Gallagher of Abbey

Listed housebuilder Abbey has received an offer from its majority owner, the Gallagher family, to take the company private.

The offer relates to approximately 4.38pc of the issued share capital of the company.

The offer of £15.75 per share values the total outstanding shares which are subject to the sale at £14.4m (€16m).

It values the entire issued ordinary share capital of Abbey at approximately £328.8m (€364m).

The offer represents a premium of approximately 1.6pc to the closing price of £15.50 per share yesterday, and a premium of approximately 19.8pc to the average daily closing price over the 12‑months to date of approximately £13.14 per share.

The deal will be financed from the existing cash resources of Gallagher Holdings Limited (GHL).

Abbey also today said profits at the operating level were €26m in the six months to October 31, compared to €21.45m at the half way stage last year.

Included in operating profits are foreign exchange gains of €3.52m.

During the period its housebuilding division completed 291 sales (237 in the UK, 36 in Ireland and 18 in Czechia) with a turnover of €105.45m resulting in an operating profit of €25.04m.

However, the group warned there are signs in the UK that supply chain and skilled labour shortages may emerge in the year ahead.

In Ireland progress is steady and year end completions “are on track to be significantly ahead of last year,” it said.

M & J Engineers, its UK plant hire business, generated operating profits of €435,000 on a turnover of €7.56m. Abbey said turnover in this division continues to be “substantially behind year ago levels” and a difficult second half is in prospect.

Abbey said it is planning “significant investment” in land in the year ahead.

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