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(Reuters) – Kier shares, struggling, lost 13 percent on Friday, after the media reported that the construction and services group was looking to sell its housing construction unit as part of the deal. a review to reduce debt and simplify its structure.
Kier issued a profit warning last week that equities had fallen 40 percent, their lowest level in two decades. Investors have therefore speculated on the possibility of reducing dividends and would seek to raise more funds after the failure of an equity issue last year.
The Times reported Friday that Kier had questioned his advisers about selling the housing division at between £ 100m and £ 150m.
Analysts in Liberum said that the amount quoted would be "disappointing" for the entire business and compared to the company's own valuation of the value of the business in fiscal year 2018, which amounted to to 291 million pounds.
"However, events are going fast and disposals may be complicated, given the joint ventures in real estate and residential, they will be very dilutive," said the broker.
Several major British construction companies have suffered since regulators tightened the rules for public sector entrepreneurs following the collapse of Carillion last year and the transition to the administration of another peer, Interserve. March.
Last month, another home builder, Galliford, rejected Bovis' bid to acquire its Linden Homes and Partnerships & Regeneration businesses in exchange for new shares in Bovis Homes, saying it was not in the interest of all shareholders.
Kier shares fell 13.7% to 175 pence, making it the worst performance on the market. FTSE average size index.
(Report by Justin George Varghese in Bengaluru, edited by Patrick Graham)
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