(This article has been updated with additional information)
FORT WORTH—D.R. Horton Inc. (DHI) said Monday it had submitted an offer to buy 75% of residential and mixed-use developer Forestar Group Inc. for $16.25 per share. The all-cash bid comes about six weeks after Starwood Capital Group had agreed to pay about $605 million to take Forestar private.
The DHI bid would keep Forestar trading on the New York Stock Exchange, an arrangement that the Fort Worth-based homebuilder says would ensure Forestar's continued access to capital. “We believe that D.R. Horton is uniquely positioned to make Forestar the country's leading residential land development company,” says Donald R. Horton, chairman of the board at DHI. “Together, we can grow Forestar into a much more significant and valuable company for all of its stockholders.” DHI says it has the cash on hand and other immediately available financing to cover the $520-million cost of acquiring 75% of Forestar's stock.
Under the DHI scenario, Forestar would be led by new executive chairman Donald Tomnitz, who served as DHI's CEO for over 15 years. The Forestar management team is expected to include senior members of its current roster.
A spokesman for Starwood Capital tells GlobeSt.com the firm has no comment on DHI's counter-proposal. Forestar said late Monday afternoon that its board continued to recommend the Starwood Capital offer.
Prior to DHI's offer, a special meeting of Forestar shareholders had been convened for July 7 to vote on the Starwood Capital bid, which was announced this past April 13. Shares of Forestar were up by 12.5% as of late morning Monday.
(This article has been updated with additional information)
FORT WORTH—D.R. Horton Inc. (DHI) said Monday it had submitted an offer to buy 75% of residential and mixed-use developer Forestar Group Inc. for $16.25 per share. The all-cash bid comes about six weeks after Starwood Capital Group had agreed to pay about $605 million to take Forestar private.
The DHI bid would keep Forestar trading on the
Under the DHI scenario, Forestar would be led by new executive chairman Donald Tomnitz, who served as DHI's CEO for over 15 years. The Forestar management team is expected to include senior members of its current roster.
A spokesman for Starwood Capital tells GlobeSt.com the firm has no comment on DHI's counter-proposal. Forestar said late Monday afternoon that its board continued to recommend the Starwood Capital offer.
Prior to DHI's offer, a special meeting of Forestar shareholders had been convened for July 7 to vote on the Starwood Capital bid, which was announced this past April 13. Shares of Forestar were up by 12.5% as of late morning Monday.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
