Firm given fresh deadline to commit to bid for housebuilder rival
Bellway has been given more time to make an offer for Crest Nicholson or walk away.
The Panel on Takeovers and Mergers set the new deadline, originally due to lapse today (Thursday), for 20 August at which point the company has to commit to making an offer.
A Bellway spokesperson said: “Good progress has been made on reciprocal due diligence with a number of elements satisfactorily completed by both parties.”
But the firm said it needed the extra 12 days “to fully conclude due diligence and the negotiation of definitive transaction documentation”.
Bellway made an improved £720m offer last month after two earlier bids were rebuffed.
Under the terms of the latest proposal, Crest Nicholson’s shareholders would receive 0.099 shares in Bellway for each share they own in Crest Nicholson and a dividend of 4 pence per Crest Nicholson share.
Bellway said the merger would deliver operational benefits and open dual outlets on at least 10 current and future Crest Nicholson sites. It said it will keep its rival’s brand across the enlarged group, including on Bellway sites.
In the six months to April, Crest Nicholson made a £31m pre-tax loss on revenue down 9% to £257.5m, compared with a £28m profit the previous year.
Bellway, which is due to put out a trading update tomorrow (Friday), recently announced it was “on track” to deliver 7,500 homes this financial year, with improved affordability having yielded a strong spring selling season.
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