Bridgemere Board Proposal

RNS Number : 1816O

Redrow PLC

02 March 2009

 



2 March 2009

Redrow plc

Bridgemere Board Proposal

Redrow announces that it has been notified by Mr Steve Morgan that, through his investment vehicles Bridgemere Securities Limited ('Bridgemere') and Durcan Investments Limited, he has increased his direct holding from 16.96 per cent. to 23.46 per cent. of the issued share capital of Redrow plc ('Redrow' or the 'Company'). The board of Redrow has been advised by Mr Morgan that he purchased these additional shares from Toscafund Asset Management. The board of Redrow has also been advised by Mr Morgan that Bridgemere holds contracts for difference over an additional 6.46 per cent. and Bridgemere would therefore have an interest in approximately 29.9 per cent. of the issued share capital of Redrow if these contracts were closed out through physical settlement.

Mr Morgan has proposed that he should join the board of Redrow in an executive role which, together with other proposals, would result in a fundamental change in the composition of the board.  The board remains committed to its high standards of corporate governance and is seeking clarity on these board changes and other critical aspects of Mr Morgan's proposal. 

The board of Redrow will continue to act in the best interests of all shareholders and will reinforce this commitment through its ongoing series of post-results meetings with its leading institutional shareholders.

As indicated in the Company's recent Interim results, Redrow continues to be mildly encouraged by the improvement in sales reservation rates in the first weeks of 2009 against an unprecedented downturn in its markets over the last 18 months. Redrow responded early to these market conditions to position the Company best to deliver value for shareholders once market conditions improve.

Enquiries

Redrow plc                                                                                                                        01244 520 044

Alan Bowkett, Non-executive Chairman

Neil Fitzsimmons, Chief Executive

David Arnold, Group Finance Director    

Brunswick Group LLP                                                                                                       020 7404 5959

Patrick Handley 

Jayne Rosefield    

 

END

 

 

MSCLLLLBKXBEBBF