Crest Nicholson says it rejected multiple takeover offers by rival Bellway
The bids are the latest example of attempted consolidation in the struggling housebuilding sector.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Crest Nicholson has confirmed that it rejected two takeover offers by rival Bellway last month, including one worth £650 million.
The housebuilder said the most recent offer, worth 253p per share, would have left Crest Nicholson shareholders with about 17.1% of the new company.
It also represented a premium of about 18.8% on Crest Nicholson’s share price of 213p at the close of business yesterday, it said.
The board said it “significantly undervalued Crest Nicholson and its future standalone prospects”, so rejected the offer on May 14.
Bellway also made an earlier approach on April 25, which was rejected on May 2, Crest said today.
The bids are the latest example of consolidation attempts among housebuilders, as the sector struggles through a period of weak demand due to high mortgage rates.
Earlier this year, Barratt agreed to buy Redrow, while Vistry bought Countryside in 2022.
Crest Nicholson, meanwhile, warned yesterday that annual profit will fall by about a third this year as market challenges persist longer than expected.
It said house sales have fallen back since Easter after the Bank of England delayed its decision to cut the base interest rate until later this year.
This, combined with a tricky winter period marked by high inflation and mortgage rates hampering demand, has caused an 88% fall in half-year profits to just £2.6 million for the six months to April 30.
Bellway confirmed yesterday that it had made an unsuccessful takeover offer.