16th Mar 2005 09:59
Crest Nicholson PLC16 March 2005 16 March 2005 Crest Nicholson plc ("Crest Nicholson" or the "Company") Response to announcement by Heron Corporation ("Heron") Crest Nicholson notes the announcement by Heron regarding a possible offer forthe Company. Crest Nicholson confirms that it has received from Heron an informal oralexpression of interest to acquire those ordinary shares in Crest Nicholson whichit does not already own. This expression of interest was very unclear on anumber of critical issues including the price of any possible offer, the partieswho would make any offer, sources of funding, required due diligence andtimetable. Crest Nicholson gave Heron the opportunity to clarify its proposals and Heronhas refused to do so. Heron's announcement today notes that an offer, if made, could value eachordinary share at a price of between 345 pence and 430 pence. The Board of CrestNicholson, as advised by its financial adviser UBS Investment Bank, believesthat, even at the top of this range, this would significantly undervalue theCompany. John Matthews, the Chairman of Crest Nicholson, said today: "Crest Nicholson is a company that has performed consistently and strongly inrecent years. The Company continues to experience good trading, has excellentprospects, a strong landbank of high quality and above average length, andshould increasingly benefit from its focus on exploiting the new opportunitiesoffered by urban regeneration. We have a value enhancing strategy whichpositions Crest Nicholson well and which should continue to deliver attractivereturns to shareholders. "The Board of Crest Nicholson has its fiduciary duties to the shareholders ofthe Company uppermost in its mind. For any offer for Crest Nicholson to berecommended by the Board, it will need fully to reflect Crest Nicholson'sstrengths and excellent prospects. Even at the top of this range, this proposalsignificantly undervalues Crest Nicholson and shareholders are recommended totake no action." ENQUIRIES Crest Nicholson plc +44 20 7404 5959 (c/o Brunswick)John MatthewsJohn Callcutt Brunswick +44 20 7404 5959Andrew FenwickKate Miller UBS +44 20 7567 8000Robert JenningsEmma Goodrick Dresdner Kleinwort Wasserstein (Corporate Broker) +44 20 7623 8000Charles BattenMichael Covington This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Crest Nicholson