LONDON — British house builder Bovis Homes is at the centre of a takeover bid from two rivals.
Bovis confirmed in a statement that it rejected initial bids from rival builders Redrow and Galliford Try, but said discussions with the latter were still ongoing.
Redrow proposed a share-and-cash transaction for the company, while Galliford Try proposed an all-share transaction.
The group said that it had rejected both offers because they did not reflect the “underlying value of the Bovis business.”
It added: “The board also concluded that the Redrow proposal was not in the interests of Bovis shareholders as the cash element of the offer would require shareholders to crystallise value at the current Bovis valuation.”
“Redrow subsequently indicated that it was not willing to improve the terms of its proposal and discussions were terminated. Discussions with Galliford Try are ongoing.”
Shares in FTSE-250 firm Bovis were valued at £8.28 at the close of last week, valuing the firm at approximately £1.1 billion, and Galliford Try said it had offered a 7% premium Bovis’ closing share price, bidding at £8.86 a share.
News of the takeover bid pushed up Bovis’ valuation up nearly 8% at the open on Monday, pushing share values over Galliford Try’s valuation to £8.91. Here is the chart as of 8.40 a.m. GMT (4.40 a.m. ET):
Here is the chart as of 8.40 a.m. GMT (4.40 a.m. ET):
Galliford Try is valued at £1.3 billion on the FTSE-250, with stocks moving up by 0.06% on Monday as of 8.40 a.m. GMT (4.40 a.m. ET)
The takeover approaches came after a difficult period for Bovis, which is still without a chief executive after David Ritchie resigned in January following a surprise profit warning in December.
Under takeover rules, Galliford Try has one month to submit a full takeover bid or walk away.