Fri 4 Jul 2008
Lenders call for the sale of Taylor Woodrow
Banks have ordered Taylor Wimpey to sell its construction arm - Taylor Woodrow, after the company failed to raise emergency funding to the tune of £500m this week.The company has suffered as a consequence of the housing dowturn and has announced the departure of its finance director Peter Johnson, confirmed that it will be closing 13 of its 39 regional offices, announced land writedowns of 11% (£550m), and verified that 900 jobs will be cut.
A source close to Taylor Wimpey commented: “What the banks want is fresh cash, either through a sale of Taywood or the raising of equity, but preferably both. And preferably soon.”
The company has debts of around £1.9bn and is currently running the risk of breaching banking covenants. Analysts estimate that the company could be sold for around £150m, although its difficult to offer a precise valuation at this stage.
Companies such as Costain, Bouygues UK and Balfour Beatty have all been mentioned as possible bidders for the company.
Taylor Wimpey and Taylor Woodrow refused to comment.
Posted by Marc Da-Silva
in Balfour Beatty, Bouygues UK, Costain, News, Peter Johnson, Taylor Wimpey, Taylor Woodrow on Fri 4 Jul 2008
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