Galliford Try and Bovis Homes agree £1bn deal

Galliford Try has agreed to Bovis Homes’ renewed £1.075bn bid to acquire Linden Homes and its Partnerships & Regeneration businesses. This increased offer includes £675m of Bovis shares, £300m in cash and the transfer of £100m in debt. It would give Galliford Try shareholders a 29.3% stake in the housebuilder. Bovis Homes is seeking to raise £157m through a placement of 13.5m new ordinary shares at 50p each. It will use the net proceeds to part fund the cash component of the acquisition. The increased offer comes after the construction giant rejected an offer of £950m in May. Galliford Try shareholders will meet on 29 November and Bovis Homes shareholders will meet on 2 December to vote on the bid. Subject to the approval of all shareholders, a deal is expected to complete around 3 January. The acquisition would see Bovis take control of the housing business with the ability to deliver more than 12,000 homes a year. Galliford Try would remain a listed group. Peter Ventress, chairman of Galliford Try, said: “This transaction is a positive development which is in the best interests of both our shareholders and wider stakeholder group. For Galliford Try, it establishes a focused and well-capitalised construction business led by a very experienced and dedicated management team.”               Greg Fitzgerald, chief executive of Bovis Homes, said: “The combination with Galliford Try Partnerships gives Bovis Homes a market-leading position in the high-growth, more resilient partnerships market, with significant potential to increase revenue and profit while delivering more affordable homes at a time when they are needed more than ever.”   To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette