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Fri July 19 2024

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Revised Bellway offer wins over Crest Nicholson board

10 Jul The board of Crest Nicholson has said that it is minded to recommend shareholders approve a revised £720m takeover bid form Bellway, should the offer be formalised.

The Crest Nicholson board was twice rejected approaches from Bellway, the latter worth £650m, but has been won over by a third offer.

On 14th June 2024, Crest Nicholson confirmed it had received two unsolicited preliminary proposals from Bellway in relation to a possible all-share offer for Crest Nicholson, both of which had been unanimously rejected.

Following further discussions, 2024 Bellway submitted its latest offer on 3rd July, valuing the business at £720m and giving Crest Nicholson shareholders 18% of the combined group.

Bellway intends to retain and use the Crest Nicholson brand across the enlarged group.

The boards of Bellway and Crest Nicholson agree that “there is compelling strategic and financial rationale for a combination”, delivery operational efficiencies, procurement synergies and the ability to open dual outlets on at least 10 current and future Crest Nicholson sites with complementary brands.

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Under stock exchange rules, Bellway now has until 5pm on 8th August to firm up the offer and make it official.

As reported earlier this week, the board of Crest Nicholson rejected an approach from rival house-builder Avant Homes while Bellway remained interested.

Avant Homes offered the Crest Nicholson board a £770m deal that would give Avant shareholders, including main shareholder Elliott Investment Management and former Persimmon chief executive Jeff Fairburn, 30% of the enlarged group and retain Crest’s stock exchange listing.

The board of Crest Nicholson evaluated the Avant proposal with its financial advisers, Barclays and Jefferies, and concluded it was not ready to engage in discussions with Avant while in an offer period in relation to a possible all-share offer from Bellway.

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