Elliott-backed Avant makes rival takeover bid for Crest Nicholson

The Crest Nicholson board has rejected a takeover bid from Avant Homes, led by former Persimmon boss Geoff Fairburn, Sky News has learned.

Sky News has learned that Avant Homes, run by former Persimmon boss Geoff Fairburn, made a takeover bid to Crest’s board last month.

The offer was rejected by the Crest board in the last 10 days, city sources said, and insiders said Elliott would have become the largest shareholder in the combined group.

Some said the merger may not be attractive to some Crest Nicholson shareholders.

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Avant’s interest comes just weeks after Crest rejected a takeover bid from Bellway, another London-listed housebuilder, which valued the target company at around £665 million.
Bellway now has a deadline set by its takeover committee of next Thursday for it to make a formal offer to Crest.

It is unclear whether the company intends to make a revised offer.
“The board therefore unanimously rejected the amendments on 14 May 2024.”
The possibility of a bidding war for Britain’s biggest housebuilders would reinvigorate an industry that is central to the new Labour government’s policy agenda.Spotlight on the city.
In its manifesto, Labour promised to build 1.5 million homes during its first five-year term.

Housebuilding shares reacted positively to Labour’s landslide victory on Friday morning, with Persimmon, Barratt Developments and Taylor Wimpey recording gains.

Persimmon is already in talks with Legal & General’s Cara Group to take over, while Barratt and Redrow agreed a £2.5 billion merger earlier this year.

Crest Nicholson shares were up about 1.4% to 248p on Friday morning, giving the company a market capitalisation of £628 million.
Avant’s chairman is Mr Fairbairn, who left Persimmon in 2018 after protests in the city over his excessive pay.
Elliott brokered the Avant deal through Barclay DeVere.
HSBC and Bank of America are advising Avant on its interest in Crest, as are Barclays and Jefferies.
Both Mr. Elliott and Mr. Crest declined to comment.