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Tue December 10 2019

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Bovis-Linden takeover set to complete in January

5 days Shareholders of both Bovis Homes and Galliford Try have given their resounding approval to a deal that sees the former take over the latter’s house-building businesses.

More than 96% of votes cast at a Bovis Homes shareholder meeting on Monday approved the acquisition. This followed a Galliford Try vote on Friday that gave more than 99% approval to the deal.

The transaction is therefore on course to complete in January 2020.

Under the deal, as previously reported, Bovis Homes is paying the equivalent of £1.075bn to acquire Linden Homes and Galliford Try Partnerships & Regeneration. Bovis will pay £300m in cash and the remainder in shares, to give Galliford Try shareholders 29.3% of the enlarged Bovis Homes group.

The deal more than doubles the size of Bovis Homes, giving it capacity to build more than 12,000 homes a year.

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Bovis Homes shareholders were less enthusiastic about the size of the directors’ remuneration packages, however. Chief executive Greg Fitzgerald stands to get £4.1m a year if he hits his targets. There was only 65% approval for the remuneration policy of the directors and 69% approval for the 2020 long term incentive plan (LTIP).

Bovis Homes’ board said: “The remuneration committee believes that the proposed remuneration policy and LTIP plan is in line with the industry and properly reflects the resultant scale and complexity of the group.”

However, it said that it had “a good understanding of the concerns of some of our shareholders”.

It added: “In line with the provisions of the UK Corporate Governance Code, we will continue to engage with those shareholders and will provide an update on the views received on these issues and actions taken in response no later than in six months' time.”

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