The general has entered stage two of his plan to buyback the homebuilding company that bears his name: Newport Beach-based William Lyon Homes Inc. But the price is going up.
Gen. William Lyon said Tuesday he plans to take the company private by buying the remaining interest in the company’s common stock outside his control at $82 per share. The transaction would be worth $200 million.
The move follows Lyon’s January buy of 655,569 shares from investment firm Bricoleur Capital Management LLC for $67 per share. A trust fund for his son bought 331,437 shares. The general retains voting rights for those shares.
In trading Wednesday the company’s stock closed on a 14.3% rise, just shy of $86. Trading above Lyon’s bid is a sign investors expect him to offer more money per share.
Lyon owns a 48% equity interest in the home building company and is chief executive and chairman. His son’s trust owns about 24% of the company’s outstanding shares.
Lyon said he has retained Lehman Brothers Inc. as an adviser in the proposed buyback. He indefinitely postponed the company’s shareholder meeting previously set for May 9.
