Bovis Homes rejects offers from Galliford Try and Redrow
Bovis Homes is continuing talks with Galliford Try despite rejecting initial takeover bids from the construction company and fellow housebuilder Redrow.
In a statement, Kent-based Bovis - whose chief executive David Ritchie stepped down last month - confirmed it had received written proposals from Redrow and Galliford Try outlining potential merger proposals but had rejected both offers because they did not reflect the "underlying value of the Bovis business".
"Redrow proposed a share and cash transaction for the Company. Galliford Try proposed an all-share transaction for the Company. Both proposals were preliminary and subject to due diligence," the statement read.
"The Board of Bovis reviewed the proposals and concluded that neither reflected the underlying value of the Bovis business and therefore both should be rejected.
"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. The decision to reject the proposals was communicated to the two parties.
"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."