Bovis has confirmed that it has received merger proposals from both Redrow and Galliford Try. The firm has rejected both saying that "neither reflected the underlying value of the Bovis business", but confirmed that talks are continuing with GT.
Redrow proposed a share and cash deal which in aggregate amounted to £8.14 per Bovis share. Bovis said that when this proposal was rejected Redrow indicated that it was not willing to improve the terms of its proposal and "discussions were terminated".
Galliford Try – which includes Linden Homes – proposed an all share merger with Bovis which valued Bovis at £1.191 billion or £8.86 per share. The deal would see GT being the 52.25% majority shareholder in the combined group. Bovis said that although the proposal was rejected "discussions with Galliford Try are ongoing".
GT said that its five year organic growth strategy "could be enhanced and accelerated by this proposed merger, given its potential to create a new major housebuilder with national scale and geographic coverage through the combination of the 6th and 8th largest UK housebuilders by completions."
In 2016 Linden built in the region of 3,200 homes and is targeted to deliver 4,750 to 5,000 in 2021. Bovis completed 3,977 homes in 2016.
GT has until April 9 to announce a firm intention to make an offer.