According to news reports, the board of Crest received an all-share approach from Avant Homes, the company headed by former Persimmon CEO Jeff Fairburn, last month.
Insiders indicated that Elliott would have become the largest shareholder in the combined company if the proposal had been approved, but City sources said that Crest’s board had rejected it within the last ten days.
According to one, the merger might make the company’s stock look unappealing to certain Crest Nicholson investors.
Weeks after Crest turned down a proposal for around £665 million from Bellway, another housebuilder listed in London, Avant has expressed interest in the target.
The Takeover Panel has now given Bellway until next Thursday to submit a formal offer for Crest.
After consulting with its financial advisors, the Crest Nicholson board determined that the revised proposal was not in the best interests of the company’s shareholders and that Crest Nicholson and its future standalone prospects were considerably undervalued. This was announced last month.
Therefore, on May 14, 2024, the board unanimously rejected the new proposal.
