ONE of the UK’s biggest housebuilders, Crest Nicholson, yesterday said it was receptive to a £720million takeover bid by rival Bellway. Bellway is hoping for a deal after two previous approaches were rejected, but investors seem unconvinced. A combined company would be worth £4billion and add to the wave of dealmaking that has already seen Redrow and Barratt strike a £2.
6billion merger. Crest Nicholson said Bellway upped its offer to 273p a share, from the 253p attempt in June. However its shares yesterday were well below the offer price at 239.
60p, valuing the firm at £615.5million. It suggests shareholders are not convinced of a deal and may reject it.
An insider stressed there was no certainty and the parties had until August 8 to do due diligence. It comes just a week after Crest Nicholson rejected a reverse takeover approach from Avant Homes, fearing it would load the company with debt. Crest Nicholson is known for building premium family houses in the South East while Bellway makes more affordable homes across the UK.
Oli Creasey, property analyst at Quilter Cheviot, said: “The Crest Nicholson brand is complementary to Bellway’s existing business as it tends to build higher value homes.” Bellway plans to build around 7,500 houses this year while Crest Nicholson lowered estimates to 1,800. Barratt yesterday revealed it will build only slightly more this year than at the height of Covid .
“GAZUMPING” is a horrible risk when it comes to buying a house. It w.
