Offer Made For Viceroy Homes
Joint Stock Open Investments Offers to Buy Prefab Home Manufacturer
Joint Stock Open Investments has made of proposal to purchase Viceroy Homes Ltd.
With the recent boom in the Russian Housing market, and the increasing interest in high end out of town properties a Russian Real Estate company, known as Joint Stock Company Open Investments has made an offer to purchase pre-fabricated home builder Viceroy Homes (VHL.A). The Moscow based company is offering a substantial premium over the current stock value.
Viceroy Homes (VHL.A) was founded over 50 years ago in Ontario, Canada, and has specialized in the construction of prefabricated home packages for distribution worldwide. Viceroy (VHL.A) is the largest Canadian supplier of housing technology to foreign markets. They have manufacturing facilities in Ontario and British Columbia. Stock information is recorded on the Toronto Stock exchange.
Joint Stock Company Open Investments a subsidiary of Interros made an offer that would add approximately a 37% share premium to the current share price. Joint Stock Company Open Investments has primarily focused on Oil and Petroleum Markets but Interros has frequently delved into the Russian Real Estate market.
The offer would offer shareholders liquidity to their stock holdings, and would provide greater access to the potential in the growing Russian housing market. There is a strong belief that the demand for detached rural dwellings will draw Russian Home buyers outside of the hustle and bustle of the urban sprawl.
In 2006 the Russian housing market products 51 million square metres of residential space. With growth in the residential sector it is no wonder that companies such as Joint Stock Company Open Investment are looking for a way to exploit the housing market.
With faltering North American Real Estate markets this would offer a profitable opportunity for Viceroy to grow their export side of their business over the next several years by allowing them a head start into the lucrative Russian Real Estate Boom, as they wait for the recovery of the North American markets.
Shareholders will eagerly watch the process to see how negotiations proceed. Many will weigh the costs and benefits of the sale and ultimately the shareholders will decide the best course of action in the sale process. Other prefabricated home manufacturers will be watched the sale process as well as it may very well have far reaching implications for the modular and prefabricated home industry at large.
Future projections aside we will all have to wait to discover the final outcome in this unfolding story. Updates will be posted, as they are made available, as the sale process moves through the opening stages of negotiation.
