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The
cash offer of $16.25 per Forestar share represents a 14 percent
premium to the price offered by U.S. investment firm Starwood
Capital Group to buy all of Forestar, D.R. Horton said.
Austin, Texas-based Forestar in April agreed to be bought by
Starwood for $14.25 per share.
Forestar's shares were up 12 percent at $15.95 in premarket
trading.
The deal would help D.R. Horton, the No. 1 U.S. homebuilder,
expand its land and lot portfolio at a time when homebuilders'
margins are being hurt by higher land acquisition costs.
Under the proposed deal, Forestar will remain public to ensure
continued access to capital to help fund its increasing scale,
D.R. Horton said.
D.R. Horton has the cash and other immediately available capital
to fund the deal, the company said.
Moelis & Co was D.R. Horton's financial adviser.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Sai
Sachin Ravikumar)
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