Real Estate

Crest Nicholson Rebuffed Bellway’s £650 Million Takeover Bid

  • Offer was 18.8% above Crest Nicholson’s Thursday closing price
  • Crest Nicholson shares plunged Thursday on profit guidance

A Crest Nicholson housing development in Maldon, UK.

Photographer: Chris Ratcliffe/Bloomberg
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UK homebuilder Crest Nicholson Holdings Plc said it rejected a takeover bid from rival Bellway Plc last month because the offer price was inadequate.

The all-share proposal at an implied 253 pence apiece, valuing Crest Nicholson at about £650 million ($827 million), represents a premium of 18.8% over Thursday’s closing price. This followed an earlier approach that “fundamentally undervalued Crest Nicholson and its future prospects,” the company said in a statement Friday.