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Deadline for Bellway takeover of Crest Nicholson extended
The deadline for Bellway to make an offer to acquire rival house builder Crest Nicholson has been extended.
In a statement, the firms said “good progress” had been made, but more time was needed to “fully conclude due diligence”.
At the end of April, Bellway made an initial offer that would have seen Crest’s shareholders receive 0.089 new ordinary shares in Bellway. In June, Crest Nicholson rejected a £650m takeover bid.
The board of the Surrey-based firm said that the revised proposal “significantly undervalued Crest Nicholson and its future standalone prospects” and was “not in the best interests” of shareholders.
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However, the following month its board confirmed that it was “minded to recommend unanimously” a revised takeover bid from Bellway.
The North East house builder said it had made a revised non-binding, all-share offer on 3 July of an implied value of 273p per Crest share, totalling around £720m.
Bellway’s deadline to make an offer for Crest Nicholson or announce that it does not intend to make an offer was today (8 August). This has been extended to 20 August.
Bellway and Crest said “good progress has been made on reciprocal due diligence, with a number of elements satisfactorily completed by both parties”.
“However, in order to allow further time for discussions between Bellway and Crest Nicholson, to fully conclude due diligence and the negotiation of definitive transaction documentation, the board of Crest Nicholson has requested, and the panel on takeovers and mergers has consented to, an extension to the [put up or shut up] deadline,” they said.
“There can be no certainty that a firm offer will ultimately be made for Crest Nicholson by Bellway, even if the preconditions are satisfied or waived. Bellway reserves the right to waive any precondition to the making of an offer.
“A further announcement will be made as and when appropriate,” they added.
The boards of Bellway and Crest previously said “there is compelling strategic and financial rationale” for the merger under the terms of the revised proposal.
They said the deal would bring together “the strength of each business, with complementary brands to reinforce Bellway’s position as a leading UK house builder, while enabling Crest Nicholson shareholders to benefit from the scale of the combined business”.
The Crest brand would be retained and used throughout the combined group’s sites, including on Bellway sites.
Crest reported earlier this year that the bill to remediate building safety issues was more than double its last estimate, totalling £31.4m.
Bellway highlighted stronger trading throughout the spring selling season, but noted an “expected reduction in social housing output in financial year 2025”.
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