￡100m Bullock sale may start private equity stampede

摘要

In an increasingly jittery market, ￡100m may seem a lot to shell out for a construction company. In fact, the figure is a conservative estimate of what private equity investor Lloyds Development Capital (LDC) paid for ￡140m-turnover Midlands social housing firm Bullock. The company was sold hours ahead of changes to capital gains tax laws on 6 April, which meant the owners escaped an 18% charge on the proceeds. HBOS, which funded a ￡42m management buyout of Bullock in September 2005, didn't do too badly either. If the price was, as some people claim, closer to ￡120m, it trebled its money in under three years. Although deals have been shelved elsewhere, it is evidently not such an uncertain time in social housing. HBOS still has stakes in four social housing contractors (see box, right) and says it is "positive about the prospects for the sector".