Crest Nicholson’s board has decisively rejected a significant bid from Avant Homes but remains engaged with Bellway’s potential offer. As Avant proposed a £770m bid, Crest’s decision pivots on an impending decision from Bellway, which previously offered £650m. The strategic hold aligns with recent leadership changes at Crest amid financial setbacks. Bellway has a deadline to affirm its intentions, influencing future negotiations.
Crest Nicholson’s board has made a strategic decision to reject a £770 million proposal from Avant Homes, a move aimed at keeping strategic options open while a potential offer from Bellway looms on the horizon. The proposal from Avant Homes involved granting its shareholders, including Elliott Investment Management and Jeff Fairburn, 30% ownership of the combined entity, along with a retention of Crest’s listing on the stock exchange. However, after thorough consultation with financial advisers Barclays and Jefferies, Crest Nicholson’s board has determined that discussions with Avant will not commence until Bellway’s intent is fully clarified.
Bellway’s previous two attempts to acquire Crest Nicholson, including a recent offer valued at £650 million, have not been successful. Yet, under existing stock exchange regulations, Bellway has until 5pm on the 11th of July, 2024, to declare a formal intent to propose an offer for Crest Nicholson or withdraw its interest entirely. This looming deadline places Bellway at a critical decision-making juncture, which directly impacts any possibility of further engagement with Avant Homes.
Crest Nicholson’s hesitance to engage with Avant Homes must also be viewed in the context of its recent announcement of a pre-tax loss amounting to £30.9 million for the six-month period ending on the 30th of April, 2024. This financial downturn is attributed to a comprehensive review of site costs, culminating in a one-off charge of £31.4 million. Overlaying these financial challenges is a noteworthy leadership transition, with former chief executive Peter Truscott stepping down to be succeeded by Martyn Clark, whose prior experience includes a role at Persimmon alongside Jeff Fairburn.
This series of events underscores a period of notable transition and decision-making for Crest Nicholson, as leadership recalibrates its strategic objectives amid adverse financial results and potential corporate restructuring. Bellway’s impending decision may very well dictate the next chapter for Crest Nicholson, with outcomes that could redefine its corporate trajectory.
Crest Nicholson’s future direction hinges on Bellway’s forthcoming decision amidst ongoing financial and managerial transitions.
