Anton Bilton is injecting his privately owned assets in Raven Group into AIM-listed housebuilder Raven Mount, of which he is a director.
Raven Mount will change its focus to the assisted living sector, entrepreneurial commercial regeneration projects and eastern and central European investment and development.
Bilton said on Wednesday: “This will be an exciting company that will move fast to exploit new opportunities.
“We will complete Raven Mount’s existing residential projects, but will refocus on the assisted living sector. This has the added advantage of providing a secondary income by operating the assets.
“Over seven years we hope to have 50 units across the UK, each with around 70 homes. We have three up and running already and five in planning.”
Bilton said there were plans for an eastern and central European development fund, encompassing investment and development in a range of sectors.
The all-share deal, worth up to £40m, is payable in tranches and is dependent on planning consents and the share price.
The transaction will not include the Raven Group investment portfolio, some commercial development sites and Raven Group’s development joint venture with Tesco.
The deal will see Bilton and his partner Bim Sandhu increase their stake in Raven Mount from 26% to 45-58%.
Bilton will replace James Hyslop as executive chairman of the group, while Sandhu becomes chief executive.
The deal depends on approval from shareholders at an EGM on 13 December. However, institutional shareholders including Schroders and UBS controlling 45.4% of the company have already approved the transaction.
Raven Mount history
Raven Mount was formed to take over luxury housebuilder Swan Hill in a hostile takeover last November. In the summer, Raven Mount talked to several potential buyers, including British Land. However, Swan Hill’s pension fund deficit proved an obstacle to the completion of a sale.
References: EGi News 06/12/04
