28th May 2019 08:07
LONDON (Alliance News) - FTSE250 listed housebuilders Bovis Homes Group PLC and Galliford Try PLC on Tuesday confirmed talks over a possible tie-up have now ended.
Bovis earlier in May made a proposal to merge with Galliford's Linden Homes and Partnerships & Regeneration businesses, Bovis said.
It would have paid GBP950 million for the two Galliford business and also take on GBP100 million of Galliford debt. All of this would have been paid for by new Bovis shares.
However, Galliford rejected the proposal, and talks have now concluded.
Galliford said the offer did not "fully value" the two businesses, and reiterated it remains confident in its long-term future.
The two companies released the statements on Tuesday after media reports, with Sky News having said Saturday the two were in "secret talks".
This is not the first potential combination with a peer for Bovis. In 2017, Redrow PLC pulled out of a potential GBP1.1 billion takeover of Bovis, and at the same time Galliford ended plans for a GBP1.2 billion deal for Bovis.
Shares in Galliford Try opened 8% higher at 574.02 pence each. Bovis shares were up 0.1% at 995.00p.
Related Shares:
Bovis HomesGalliford Try