Crest “minded to recommend” Bellway’s latest takeover offer

Crest Nicholson is “minded to recommend” Bellway’s latest takeover offer of the business according to its board, if the larger housebuilder makes a “firm intention” by August 8.

Following Crest’s rejection of two offers from Bellway made in April and May, on July 10, the smaller housebuilder said it was inclined to “unanimously” recommend a revised proposal that Bellway put to the company on July 3 to its shareholders as it was of the right value. This follows discussions between the two firms.

Under Bellway’s latest offer, valued at £720 million, Crest’s shareholders would receive 0.099 shares in Bellway for each share they own in Crest, with an implied value of 273 pence per Crest share.

This also includes a dividend of 4 pence per Crest share, comprising the previously announced interim dividend of 1 pence per share and a special dividend of 3 pence per share, conditional on completion of the transaction.

The revised proposal would also mean that Crest’s shareholders would hold 18% of the enlarged group’s “issued and to be issued” share capital.

Bellway’s offer in May valued Crest at £650 million. Crest’s shareholders would have received 0.093 new ordinary shares in …