July 13 (Bloomberg) -- Blackstone Group LP’s credit investment unit, GSO Capital Partners LP, is in talks to acquire a 160 million-pound ($256 million) stake in the U.K.’s largest privately held homebuilder, according to three people with knowledge of the matter.
GSO is negotiating the purchase of an equity stake in Edinburgh-based Miller Group Ltd. as part of a refinancing of debt due in 2012, said the people, who declined to be identified because the discussions are private.
Miller has hired Greenhill & Co. as an adviser, two of the people said.
Lloyds Banking Group Plc, 43 percent-owned by the U.K. government, owns a 20 percent stake in Miller, which the bank acquired as part of its purchase of HBOS Plc in 2009. HBOS bought the stake in 2007, anticipating that demand for new housing would outstrip supply until at least 2020.
The talks were reported earlier today by U.K. newspaper the Daily Telegraph.
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