(Finance) – The board of Bellwaya British real estate developer, has confirmed that it has submitted its latest on 7 May 2024 share offering not binding on the board of Crest Nicholsona company active in the same sector, to acquire the entire share capital, which was rejected by the board of Crest Nicholson.
Under the terms of the possible offer, Crest Nicholson shareholders would receive 0.093 Bellway shares for each share owned by Crest Nicholson. Based on the Bellway share price of 2,718 pence at close of business on 13 June 2024, this would be an implied value of 253 pence per Crest Nicholson share.
The Crest Nicholson shareholders would own 17.1% of the share capital of the enlarged group. This is a 30% premium to Crest Nicholson’s share price at the time of the last possible offer and 20.5% to its quarterly volume weighted average price.
The Bellway board believes that there is a “convincing strategic and financial rationale for a combination of Bellway and Crest Nicholson which would combine the strength of each company with complementary brands to strengthen Bellway’s position as one of the UK’s leading housebuilders, whilst allowing Crest Nicholson shareholders to benefit from the scale of ‘combined business, a reduced risk profile, lower leverage to capitalize on the long-term structural growth opportunities in the UK property market.”
(Photo: Mirko Kaminski / Pixabay)