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Bovis shares continue to climb on two takeover offers | |
(about 3 hours later) | |
Bovis shares are risen more than 10% in afternoon trading after it received two potential takeover offers. | |
The housebuilder said it had turned down the separate approaches from Redrow and Galliford Try, but that talks with the latter continue. | |
Redrow offered a cash-and-shares deal and Galliford Try's offer was in shares only. | |
Kent-based Bovis rejected the offers from both companies, arguing that they undervalued its business. | Kent-based Bovis rejected the offers from both companies, arguing that they undervalued its business. |
Galliford Try - the UK's sixth-biggest housebuilder - said its offer was worth 7% more than Bovis' closing price of 828p on Friday. | Galliford Try - the UK's sixth-biggest housebuilder - said its offer was worth 7% more than Bovis' closing price of 828p on Friday. |
Bovis shares were trading at 915p on Monday, valuing the company at just over £1.2bn. | |
It has been a torrid 2017 fpr Bovis. Last month, it said it was setting aside £7m to compensate customers who were sold houses that were unfinished and had electrical and plumbing faults. | It has been a torrid 2017 fpr Bovis. Last month, it said it was setting aside £7m to compensate customers who were sold houses that were unfinished and had electrical and plumbing faults. |
Pre-tax profits for last year fell 3% to £154.7m despite a buoyant housing market. | Pre-tax profits for last year fell 3% to £154.7m despite a buoyant housing market. |
Bovis also lacks a chief executive after David Ritchie stepped down in January after eight years in the role, weeks after issuing a profit warning. | Bovis also lacks a chief executive after David Ritchie stepped down in January after eight years in the role, weeks after issuing a profit warning. |
Neil Wilson, of ETX Capital, said Bovis had made itself a target: "The share price has failed to recover from the Brexit shock last June and is still down a quarter from 2015 highs." | Neil Wilson, of ETX Capital, said Bovis had made itself a target: "The share price has failed to recover from the Brexit shock last June and is still down a quarter from 2015 highs." |
Bovis said the Redrow proposal was not in the interests of Bovis shareholders: "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." | Bovis said the Redrow proposal was not in the interests of Bovis shareholders: "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." |
Redrow's offer is valued at 814p a Bovis share, while Galliford Try's is worth 886p per share. | Redrow's offer is valued at 814p a Bovis share, while Galliford Try's is worth 886p per share. |
Under Takeover Panel rules, Galliford has one month to submit a full takeover offer or walk away. | Under Takeover Panel rules, Galliford has one month to submit a full takeover offer or walk away. |