Last month the board of Crest Nicholson accepted Bellway’s ₤ 720m takeover deal pending due diligence examinations of both sides. The board had actually formerly declined 2 deals from Bellway, most just recently in May when Bellway’s deal of ₤ 650m was knocked back in spite of valuing Crest Nicholson at a 30% premium on its existing share rate.
While Bellway disappeared to reassess its deal, Crest Nicholson declined a method by competing house-builder Avant Homes. Avant had actually provided a ₤ 770m offer that would have offered Avant investors 30% of the bigger group and kept Crest Nicholson’s stock market listing.
On 3rd July, following more conversations, Bellway sent a deal valuing business at ₤ 720m and providing Crest Nicholson investors 18% of the combined group. Bellway stated that, following the merger, it would maintain and utilize the Crest Nicholson brand name throughout the combined group.
On 10th July, Crest Nicholson stated it was minded to suggest investors authorize a modified ₤ 720m takeover quote must the deal be formalised. Under stock market takeover guidelines, Bellway then had up until 8th August to either make a company deal or leave.
Recently, after Bellway stated it required more time to conclude its due diligence, the City takeover panel extended the due date to 20th August.
Simply after midday on Tuesday 13th August Bellway released a declaration verifying that “it does not mean to make a company deal for Crest Nicholson”.
The declaration went on: “Bellway stays positive that its robust balance sheet and functional strength, integrated with the depth and quality of its land bank, will allow Bellway to provide volume development in the years ahead and support continuous worth development for investors.”
The Financial Times reported that, following the statement, shares in Crest Nicholson fell more than 18% in early afternoon trading while Bellway stock increased by 4%.
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