Government contractor Kier has sold off its housebuilding arm to private equity baron Guy Hands in a cash deal worth £110million. The sale, subject to shareholders approval, will see the housing division wholly owned by Terra Firma under new brand Tilia Homes. A statement to the stock market from Kier said the sale of its housing arm would allow the group to “reduce its net debt” and “reduce the volatility of the group’s working capital”. But Kier Group has announced a proposed equity raise to help bolster its balance sheet as it declared it ended 2020 with an £8billion order book (ThisIsMoney).
In 2019, it was reported Kier was to sell housing businesses, cut 1,200 jobs and suspend dividend (Reuters), investors wiped over £100m off firm’s value as shares fall to lowest level since 1996 listing (Guardian). In 2018, it was reported ‘Kier Group shares dive again as investors snub £250m rights issue’ (The Insider).