KB Home announced today (May 23) that it has entered into a binding share purchase agreement to sell its entire 49% equity interest representing 10,921,954 shares in its French subsidiary Kaufman & Broad SA to PAI Partners at a price of 55.00 euros per share, netting KB approximately $738 million.

The purchase price will consist of 50.17 euros per share in cash to be paid by PAI to KB Home after payment of a cash dividend of 4.83 euros per share to be approved by the Board of Directors of KBSA and to be paid by KBSA.

KB Home had previously announced on May 17, 2007 that it entered into an exclusivity period with PAI based on a final, irrevocable, binding and fully financed offer from PAI. The transaction is expected to close during KB Home's third fiscal quarter of 2007 and remains subject to customary terms and conditions, including regulatory approval.