£88.8M Offer for Rest of Monarch Development Corp.
Taylor Woodrow PLC
7 April 2000
Taylor Woodrow plc Announces offer to Acquire Minority of Monarch Development
Corporation, Toronto.
Taylor Woodrow plc today announces that it intends to make a cash offer of
C$11.25 per share to acquire all of the outstanding common shares of Monarch
not currently owned by Taylor Woodrow and its affiliates for a total
consideration of approximately C$206 million (£88.8 million).
Taylor Woodrow and its affiliates currently own approximately 55% of Monarch's
common shares. Two institutional shareholders, The Standard Life Assurance
Company and Lincluden Management Limited, have conditionally agreed to accept
the offer in respect of approximately 31% of Monarch's common shares. Taken
together, these interests aggregate approximately 86% of Monarch's common
shares.
Monarch is one of Canada's most prominent housebuilders, holding a
particularly strong position in high rise condominium developments in and
around Toronto. Taylor Woodrow Communities, Monarch's highly successful US
joint venture with Taylor Woodrow, is a leading provider of high value, master
planned communities in Florida and Texas. In addition, Monarch has a
significant investment property portfolio in Canada.
Headquartered in Toronto, Monarch had gross operating revenues in 1999 of
C$523.3 million. Its 1999 pre-tax earnings were a record C$63.1 million, up
31.3% on the previous year. Net assets at 31 December 1999 totalled C$330.9
million.
Keith Egerton, Chief Executive of Taylor Woodrow said 'This proposed
acquisition is a very significant step for the Group. It fits superbly with
our strategy to grow our core worldwide housing and property businesses. It is
also favourably timed; we anticipate continued robust growth in Monarch's
principal markets of high rise condominiums and amenitised communities.
'Moreover, the proposed acquisition, which will be immediately
earnings-enhancing, will enable us to streamline our North American housing
operations into one efficient management structure. We will also step up the
active management of Monarch's investment property portfolio.'
Taylor Woodrow's offering circular is expected to be mailed to Monarch
shareholders during the week of 24 April, 2000, with a view to completing the
transaction by late May, 2000.
Warburg Dillon Read has been retained to advise Taylor Woodrow in connection
with the offer.
Contacts for more information:
Taylor Woodrow:
Analysts - David Green, tel. 00 44 (0)20 7629 1201
Media and other - Nicholas Jones, tel. 00 44 (0)20 7629 1201
Monarch:
David George - 001 416 491 7440
Notes to Editors
Monarch has been in business for 82 years and has recorded 59 consecutive
years of profitability. Among its recent acquisitions in partnership with
Taylor Woodrow is Steiner Ranch, near Austin Texas, a master planned community
for 2,300 high value homes and apartment units. At year-end 1999 Monarch had a
landbank of around 2,000 high rise condominium units and a C$220 million
investment property portfolio.
Taylor Woodrow is an international leader in housing, property and
construction support. Headquartered in London, it has significant housing
operations in the UK, United States, Canada, Spain and Australia. In the year
ended 31 December, 1999 it had turnover of £1.5 billion and pre-tax profits of
£125 million.
TAYLOR WOODROW - THE INTERNATIONAL DEVELOPER
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