Business News

Surrey's Crest Nicholson rejects second takeover bid from Bellway Homes

Published by
Giles Gwinnett

Weybridge-headquartered housebuilder Crest Nicholson rejected a second takeover bid from Bellway Homes, its Newcastle-headquartered rival, it was reported last week.

The approach, made on May 14, was the second in two months and Crest said the latest offer "significantly undervalued" its business.

READ MORE: New chief executive to take over later this year at Crest Nicholson

If accepted, it would reportedly have given Crest investors 0.093 shares in Bellway for each of their current shares, valuing Crest shares at 253 pence, or a 19% premium.

A spokesperson for Bellway is reported to have said: "The board of Bellway believes there is compelling strategic and financial rationale for a combination of Bellway and Crest Nicholson which would bring together the strength of each business with complementary brands."

Last week, Crest Nicholson reported a pre-tax loss of £30.9 million in its first half to end-April, down from a £28.4 million in the same period a year earlier.

It said it expected to make an adjusted pre-tax profit of between £22 million and £29 million for the full year, which fell below analyst forecasts of around £39 million

Crest has confirmed it had also rejected an earlier all-share approach from Bellway on April 25 this year.

Giles Gwinnett

Giles Gwinnett is a writer at The Business Magazine. He has been a journalist for more than 20 years and covered a vast array of topics at a range of media settings - in print and online. After his NCTJ newspaper training, he became a reporter in Hampshire before moving to a news agency in Gloucestershire. In recent years, he has been covering the financial markets along with company news for an investor-focused web portal. His many interests include politics, energy and the environment. He lives in Dorset.

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