KB Homes Sale Of Division To French Company Approved By EU : The Real Estate Bloggers

KB Homes Sale Of Division To French Company Approved By EU

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

After KB Homes posted a loss due to slow domestic sales this past quarter, the company took steps today to shore up it’s cash on hand by selling a 50.01% share of it’s French division to PAI Partners for $783 million dollars.

To me this is a smart move on 2 fronts. With great optimism in France for economic growth with a new government, companies are willing to pay a premium to get into the market. Combine that with record highs for the Euro and KB Homes sold at the top of the market and best exchange rate.

This infuses money into their domestic operations that will struggle for the next few quarters and takes discussion of any liquidity crisis off the table so the company can weather the storm.

So while they lose part of their best performing division, France is not where the future of KB Homes is. Instead they provide a layer of protection to their domestic operations during a rough stretch.  Smart move in my book.

Los Angeles-based KB Home, one of the largest U.S. homebuilders, said the sale of 50.01 percent of the unit would net it $783.2 million (580.7 million euros).
France-based PAI said in May it would make a public tender to buy the rest of the unit.
The European Commission approved the deal automatically after receiving no complaints from rivals and identifying no antitrust concerns within a deadline of 25 working days.
The French unit accounted for just over a fifth of KB Home’s total revenue in the first quarter. via  Forbes.com

Related posts:
  1. Facing Foreclosure or Short Sale? Hang On As Government is Looking To Bail You Out
  2. French Chateaus Hitting Market: Seller French Government
  3. Chrysler Building For Sale To Abu Dhabi Investment Company?
  4. Hudson Mews Complex Approved in Manhattan
  5. Aegis Mortgage Files Chapter 11 Bankruptcy



Previous Post: Active Adult Housing Market - 55 and Over - Going Strong During Slowdown | Next Post: The Horizon ABS Hedge Fund Suspending Payouts



 

If you enjoyed this post, we can deliver daily content from the Real Estate Bloggers.

Subscribe using your RSS Reader

Or Get Updates Delivered Daily By E-Mail:


Post a Response

« Back to text comment
  • Popular

    Search

    Tags

    Archives

  • Recent Comments

    • It probably is a really good time to buy real estate - monthly payments are about equal to market rents ...
      Andy-Ann Arbor real estate | 20Nov08 | More
    • The part about the inventory is right on but in my area they are mostly low end and beat up ...
      Tom@duluth homes | 19Nov08 | More
    • I worked for this man, he is a great con man and has done this in more than States then ...
      Michelle | 19Nov08 | More
    • You're right. If you come from Central Jersey (as the Boss and I do), you go to Florida at some ...
      Rhea | 19Nov08 | More
    • Maybe it was kryptonite... ECONOMIC REPORT 'Prolonged' recession, higher joblessness seen likely NABE survey indicates most economists now believe U.S. recession's started By Mike ...
      Broderick Perkins | 19Nov08 | More
    • I couldn't agree more. The newspaper has always "stuck" it to the real estate agent with rates that were much higher ...
      Doug Quance | 18Nov08 | More
    • By the way, homeowners trying to get short sale approval should be aware that lenders are comparing the initial loan ...
      JM | 17Nov08 | More
    • Ouch! Thankfully I haven't come across anything like that yet. We normally don't have situations like that in ...
      Rochester MN Real Estate | 17Nov08 | More
    • well, the guy was here illegally. serves him right.
      ryan | 17Nov08 | More
    • BY USING FIRST CLAIM INSURANCE ADJUSTERS YOU WILL HAVE THE ABILITY TO LOOK AT YOUR INSURANCE SETTLEMENT AND REALIZE FIRST ...
      ERIC | 17Nov08 | More
  • Advertisement



  • Statistics

  • Friends

  • Recent Friends Visiting

  • Subscribe





    Get Updates Delivered Daily By E-Mail:

    Delivered by FeedBurner