KB Home has accepted an offer of $812 million from Paris-based buyout firm PAI Partners for its stake in French developer Kaufman & Broad SA.

The Los Angeles-based homebuilder said the that $74.24 per share bid for its 49 percent stake in France’s largest homebuilder came in 3.5 percent more than the investment firm originally offered. That’s still more than 9 percent off of the closing price Wednesday, however.

The sale does not require shareholder approval, company spokeswoman Caroline Shaw said, and KB’s board has already approved the deal. However, approval from the European Union antitrust regulators is required.

KB Home has operated the company since 1968. With the housing markets in both France and the U.S. souring, the sale became more attractive for KB.

“KB Home and its board of directors believe the proposed transaction would be in the best interest of its shareholders,'” KB’s Chief Executive Jeff Mezger said in the statement. “The sale would further KB Home’s focus on its core homebuilding operations in the U.S. where long-term prospects are excellent.”

Shares in KB were up 23 cents to $44.20 in afternoon trading Thursday on the New York Stock Exchange.