<p><span class="kd"><span>Bovis Homes and Galliford Try have reopened preliminary discussions </span></span><span class="kd"><span>on a potential sale of GT’s housing businesses to Bovis</span></span><span class="kd"><span>, agreeing “high level” terms on a possible deal, they announced today (September 10).</span></span></p><p><span class="kd"><span>The two housebuilders are looking to combine Bovis Homes and Galliford Try’s Linden Homes and Partnerships and Regeneration divisions. This would not constitute a merger of Bovis with GT, the companies said.</span></span></p><p><span class="kd"><span>If the potential transaction goes ahead, it is expected to value the firms’ housing businesses at £1.075 billion.</span></span></p><p><span class="kd"><span>This would </span></span><span class="kd"><span>see</span></span><span class="kd"><span> </span></span><span class="kd"><span>Bovis paying </span></span><span class="kg"><span>£300 million </span></span><span class="kg"><span>in cash </span></span><span class="kg"><span>to GT, the transfer to Bovis of </span></span><span class="kg"><span>GT’s £100 million debt placement</span></span><span class="kg"><span>, and the issue to GT shareholders of 0.57406 Bovis shares per GT share, equating to 63,739,385 Bovis Homes shares (in aggregate), which are valued at £675 million, based on Bovis’ closing share price on September 9 2019.</span></span></p><p><span class="kg"><span>The boards of both housebuilders said the potential transaction would give Bovis “an enhanced housebuilding platform to compete more effectively in the UK housebuilding market,” and </span></span><span class="kg"><span>aid </span></span><span class="kg"><span>its move </span></span><span class="kg"><span>into </span></span><span class="kg"><span>the partnerships and regeneration markets, as well as provide it with a larger geographic footprint …