KB Home announced today (May 11) that it has received an offer of EUR 53.13 per share to purchase the 10,921,954 shares it owns in its French subsidiary Kaufman & Broad SA, which is listed on Euronext Paris. The offer, which would total approximately $787 million, was about 15% below the closing price of the stock on May 10.
KB owns approximately 49% of Kaufman & Broad SA's common stock but holds two-thrids of the voting rights. The company said it is currently evaluating the offer and is also "other strategic alternatives, including a public or private offering of its shares in Kaufman & Broad SA or retaining its shares." It did not identify the source of the offer.
KB said it did not intend to comment further unless it has finalized a transaction. The unit has been performing well and has given KB a needed financial boost during the current downturn in the U.S. housing market.