Crest Nicholson has said that its board is ‘minded to recommend’ Bellway’s most recent takeover, valued at £720million, to its shareholders if a firm offer is received.
Bellway has had two previous offers rejected by Crest earlier in the year, the second to the tune of £650million, which Crest said “significantly undervalued” the business. Crest also rejected an offer from Avant Homes earlier this month.
It’s been revealed that Bellway submitted a third bid to the Crest Nicholson board on 3 July, the value of which is enough for the board to be minded to unanimously recommend to the developers’ shareholders should the offer materialise.
Crest has set a date of 8 August 2024 for Bellway to confirm the offer, extending the initial deadline to allow due diligence on Bellway’s behalf.
The latest offer would see Crest shareholders receive 0.999 shares for each share owned. Each share would have an implied value of 273 pence and a premium in the region of 28.3%, with shareholders also receiving a dividend of four pence for each share.
The revised offer, should it materialise, will see Crest shareholders hold 18% of the combined group. Bellway has said that it plans to retain the Crest brand should the deal go through.
