The chairman and chief executive of Newport Beach-based William Lyon Homes Inc. appears ready to take his company private.
Gen. William Lyon said on Thursday that he and his family trusts now officially own more than the 90% of the homebuilder’s shares required to privatize the company.
Lyon said he plans to force a buyout of the remaining shares under what’s known as a short-form merger process. The buyout will be completed as soon as possible, the company said in a statement.
Lyon offered $109 for each share he didn’t already own. His offer expired Tuesday. The company’s final count of shares tendered stands at roughly 1.7 million shares, which will cost Lyon about $185 million to buy.
The offer values William Lyon Homes at about $940 million.
Lyon, who owned about 75% of the company before the buyout bid, offered $93 a share for the company in March and later upped it to $100 and then $109.
The executive tried unsuccessfully to take the company private last year, offering $82 a share.
Going private should help William Lyon Homes cut expenses. While only a small amount of the company’s shares have been available for trading, it has been paying the same legal costs and other fees as more widely traded public companies.
Privatizing the company also could speed up a possible succession plan. The general’s son, William H. Lyon, 32, has been taking on more responsibility with an eye to taking over from his father someday, sources said.
The younger Lyon now serves as vice president and chief administrative officer. He’s also a director.
