Nabarros handles Redrow offer for Tay

Nabarro Nathanson has carried out a £29.88m cash offer for Tay Homes on behalf of its longstanding corporate client Redrow Homes.
In January, Tay Homes will announce its response to the 110 pence per share offer. It is also considering an unsecured loan note alternative.
Peter Smart, corporate partner and chairman of Walker Morris, who assisted in the deal for Tay Homes, described it as a “done deal”. Redrow already has a 68 per cent stake as a result of an irrevocable undertaking, and 26 per cent is owned by Country & Metropolitan.
It is an important move for Flintshire-based property developing company Redrow, in its efforts to strengthen its position in Yorkshire and Scotland. Tay builds around 1,000 homes per year.
In August, Tay rejected an indicative share offer from Country & Metropolitan of 113 pence per share with a part cash alternative of 105 pence. Tay Homes, based in Leeds, has a £81.8m turnover against Redrow's £421.2m turnover.
Redrow financed the deal through existing resources. Cazenove & Co provided financial advice and brokered the deal for the bidder, while William de Broe acted for the target.
Nabarros corporate partner Richard Brearley said that his firm has acted for Redrow on corporate matters since its flotation. Brearley was assisted by Jonathan Cantor.
Walker Morris has acted for Tay since the 1970s. In 1983, it advised on its listing on the Unlisted Securities Market – the forerunner of AIM – and six years later when it got a full listing, and in 1998 the firm was brought in to advise on Tay's management shake-up. Smart described Tay as a solid but not significant client. Walker Morris's other building clients include Barratt Homes and Persimmon Homes.
The bid for Tay follows on the heels of the £537m bid by Taylor Woodrow for the Bryant Group in January. This bid was made two hours before an extraordinary general meeting in which Bryant was finalising a merger with Beazer.
In August, Redrow outsourced its commercial property work to Eversheds, which beat off competition from two other firms (The Lawyer, 6 August). It was the first time Redrow outsourced such work, relying before on its strong in-house capacity.