KB Home, a Los Angeles-based builder, has agreed to sell its entire 49% equity interest in its French subsidiary to a European private equity firm, PAI partners.PAI also plans to purchase additional shares from Guy Nafilyan, chairman and chief executive officer of the Paris-based Kaufman & Broad SA, which PAI says will give it at least 50.1% of the French builder's share capital and voting rights on a fully diluted basis. PAI plans to purchase from KB Home a 10,921,954-share stake in Kaufman & Broad at 55 euros (about $73.81) per share in cash after payment of a cash dividend by KBSA of 4.83 euros (about $6.49) is deducted. The deal is slated to close during KB Home's third fiscal quarter, subject to required approvals.

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