Keepmoat brushes off speculation over sale

The Doncaster-based firm, which was the subject of the biggest buyout on record in Yorkshire in 2007 with backing from the Bank of Scotland's integrated finance (BOSIF) division, said it is in a strong financial position and it is looking to grow.

Lloyds put the portfolio up for sale in November 2008, soon after it acquired HBOS at the height of the credit crunch.

Private equity firm Coller Capital is said to be the current favourite to buy the investments for a reputed 500m. At its peak the portfolio was estimated to be worth 1.4bn. A Keepmoat spokesman said: "We are inevitably mentioned each time investors enquire about the possibility of participating into the Lloyds Banking Group stable of investments."

He added: "Such reference is out of our control, but we are perfectly comfortable with it. We remain totally focussed on building on our success by growing our regeneration product and services offering and expanding the Keepmoat group into new geographical markets."

It is understood that HBOS bought into 60 businesses but some have already been sold. Lloyds said it is considering how much, if any, of the remaining portfolio to sell.

"There can be no certainty about a disposal and it would not be appropriate to comment further at this stage," it said in a statement.Ian Gordon, analyst at Exane BNP Paribas, expressed doubt about a large-scale disposal.

"We're more likely to see a piecemeal disposal as opportunities present themselves," he said.

Bank of Scotland provided backing for the 783m management buyout of Keepmoat using an integrated finance package of debt and equity.