Crest Nicholson shares surge after UK homebuilder rejects Bellway takeover offer By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 14 2024
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Source: Investing.com
- Crest Nicholson Rejects Takeover Offer: Crest Nicholson, a British homebuilder, saw its shares surge after rejecting a 650 million pound takeover offer from Bellway.
- Reasons for Rejection: The board of Crest Nicholson deemed the revised proposal from Bellway as significantly undervaluing the business and not in the best interests of shareholders.
- Confidence in Standalone Prospects: Crest Nicholson expressed confidence in its standalone prospects, highlighting completed development site provisions review, a strong land portfolio, and new leadership under CEO Martyn Clark.
- Previous Rejection: Earlier this year, Crest Nicholson turned down an unsolicited all-share approach from Bellway, stating it also undervalued the company.
- Bellway's Perspective: Bellway argued that the deal would benefit Crest Nicholson shareholders by providing larger scale, reduced risk profile, lower indebtedness, and an enhanced landbank for long-term growth opportunities in the U.K. housing market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
