Redrow slumps as chairman offloads shares

Redrow shares tumbled after The Steve Morgan Foundation - a charitable trust founded by the housebuilder's chairman - and Morgan's investment vehicle, Bridgemere Securities, sold 25.9m existing ordinary shares at 590p each, representing around 7% of the issued share capital.

Bridgemere and the trust sold 12.95m shares each and following the sale they will hold 25.5% and 7%, respectively.

The placing was conducted through an accelerated bookbuild, with Barclays acting as sole global coordinator and bookrunner, and Peel Hunt as co-bookrunner.

Following the placing, Morgan and his closely associated vehicles will continue to hold around 33% of the issued share capital of Redrow and remain its largest shareholder.

At 0845 BST, Redrow shares were down 7.8% to 582.40p.