Redrow confirmed to the Stock Exchange this morning that it has received an initial approach from investment firms led by Morgan’s Bridgemere investment vehicle.
The approach regards a possible cash offer of 152 pence per Redrow share which values the firm at around £560m.
Redrow said it “will now establish a committee of independent directors to consider the approach.”
Bridgemere holds a 40.4% stake in Redrow and is controlled by Morgan.
A Bridgemere statement said: “Bridgemere and Tosca/Penta wish to notify shareholders that they have made an initial approach to the independent directors of Redrow and are considering the possibility of making an all cash offer for Redrow of 152 pence per Redrow share.
“This approach is at a preliminary stage and no decisions have yet been made. There can be no certainty that an offer will ultimately be made for Redrow.”