Bovis fends off merger proposals from Redrow, Galliford Try

Housebuilder Bovis Homes was forced to respond to recent press speculation regarding a potential offer for the company on Monday, saying it did receive written proposals from Redrow and Galliford Try outlining potential merger proposals.

The FTSE 250 firm said Redrow proposed a share and cash transaction for the company, while Galliford Try proposed an all-share transaction for the company, with both proposals preliminary and subject to due diligence.

“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 explained in a statement.

“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.”

Bovis said 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.”

In the meantime, the board said it was making “good progress” with plans to recover and improve group profitability and enhance return on capital employed, with the search for a new chief executive also progressing well.

“The board of Bovis remains committed to maximising returns to shareholders and will continue to consider all strategic alternatives.”