Kaufman & Broad

The transaction was realised through a private placement to institutional investors by way of a bookbuilding. The placement price was set at €31.50 per share and the settlement-delivery is planned on April 29, 2016. In case of full exercise of the over-allotment option, the final placement amount may be increased to approximately €282m.

Concurrently to the placement, Artimus Participations, a newly incorporated company held by more than 125 managers of Kaufman & Broad, acquired part of the stake of Financière Gaillon 8, for a consideration of c.€30m. Upon closing, and subsequently to a share buy-back of €50m executed by Kaufman & Broad, Artimus Participations will become a core shareholder of Kaufman & Broad with intent to hold a participation of at least 5% in Kaufman & Broad’s share capital going forward. After the placement and the above-mentioned purchases, Financière Gaillon 8 will hold 35.76 % of Kaufman & Broad’s share capital, in case of full exercise of the over-allotment option.

Rationale

• Allow Kaufman & Broad to significantly increase its free float and increase the liquidity of its shares
• The shares purchased by Kaufman & Broad will be allocated in priority to the following purposes: (i) external growth transactions paid in whole or in part in shares and (ii) hedging employees’ bonus share plans

Kaufman & Broad at a glance

Headquartered in Neuilly-sur-Seine (France), Kaufman & Broad is a leading French real estate developer and constructor involved in all stages of the real estate development process. The Company builds and develops residential properties such as family homes in communities, apartments, corporate, tourist and student accommodations, as well as commercial property in France. As of 2015, it generated ca. €1.1bn in revenues and €85.7m in current operating profit (i.e. 8.1% margin). Its total backlog reached €1.3bn as of February 2016, of which €1.1bn is housing.