Bellway withdraws takeover bid for Crest Nicholson, causing Crest shares to drop 16%.

From Morningstar: 2024-08-13 10:31:00

On Tuesday, Crest Nicholson and Bellway announced that Bellway does not plan to make a firm offer for Crest Nicholson. Bellway made an initial takeover approach in April, which was rejected by Crest Nicholson. A revised proposal in July valued each Crest share at 273p.

Despite Crest Nicholson’s shares dropping 16% to 221.00p on Tuesday, Bellway’s shares rose 3.3% to 2,910.00p. Bellway had submitted a revised proposal offering 0.099 shares in Bellway per Crest Nicholson share, along with a 4 pence per share dividend.

Crest Nicholson initially indicated acceptance of Bellway’s revised bid proposal on July 10, but on Tuesday, Bellway confirmed it would not make a firm offer for Crest. Bellway remains confident in its operational strength and land bank to deliver growth.

Crest Nicholson, on the other hand, remains confident in its standalone prospects despite the unsolicited nature of Bellway’s proposals. The company highlighted its attractive land portfolio and newly appointed CEO Martyn Clark, who joined in June after working at Persimmon PLC.



Read more at Morningstar: Crest Nicholson Shares Dive as Bellway Retreats…