Dream Finders Publicly Bids $704 Million for Beazer as Shares Jump 26%
Updated
Updated · MarketWatch · May 11
Dream Finders Publicly Bids $704 Million for Beazer as Shares Jump 26%
11 articles · Updated · MarketWatch · May 11
Dream Finders said Monday it made its Beazer approach public after several unsuccessful attempts to engage management, offering $25.75 a share in an all-cash deal worth about $704 million.
The bid values Beazer at roughly a 40% premium to its May 5 close, and Beazer shares rose 26% to $23.69 in premarket trading.
Dream Finders said the latest offer is below its March $29 bid and February $28.50 bid because Beazer's stock has fallen 13% since the last proposal.
Goldman Sachs, Bank of America and Kennedy Lewis have provided highly confident financing letters, while Dream Finders said a combination would create the seventh-largest U.S. homebuilder.
With Beazer's book value near $42, is Dream Finders' $25.75 offer a brilliant bargain or a risky bet on a troubled company?
As regulators probe the housing industry, could this $704 million deal become a key test for antitrust action against homebuilder consolidation?