Elliott-backed Avant tables rival takeover bid for Crest Nicholson | Business News

A housebuilder owned by the funding agency Elliott Advisors has tabled a secret takeover supply for Crest Nicholson, its London-listed rival.

Sky Information has learnt that Avant Properties, which is run by former Persimmon chief Jeff Fairburn, made an all-share proposal to the board of Crest final month.

The bid, which Metropolis sources stated had been rejected by Crest’s board within the final 10 days, would have seen Elliott grow to be the most important shareholder within the mixed group, based on insiders.

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One stated the mixture risked representing an unattractive prospect for some Crest Nicholson shareholders.

Avant’s curiosity comes weeks after Crest rejected a bid from Bellway, one other London-listed housebuilder, that might have valued the goal at about £665m.

Bellway now has a deadline set by the Takeover Panel to make a proper supply for Crest of subsequent Thursday.

It’s unclear if it intends to submit a revised supply.

“The board of Crest Nicholson evaluated the Revised Proposal with its monetary advisers and concluded that it considerably undervalued Crest Nicholson and its future standalone prospects and was not in the most effective pursuits of Crest Nicholson’s shareholders,” it stated final month.

“The board due to this fact unanimously rejected the revised proposal on 14 Could 2024.”

A potential bidding battle for one in every of Britain’s largest housebuilders would thrust an business that can be on the centre of the brand new Labour authorities’s coverage agenda again into the Metropolis highlight.

Labour pledged in its manifesto to construct 1.5 million properties throughout its first five-year time period.

Learn extra on Sky Information:
Markets buoyed by Labour landslide after Tory turmoil
Labour have received – however what occurs subsequent?
Labour’s journey again to energy

Housebuilding shares responded positively to Labour’s landslide victory on Friday morning, with positive aspects for Persimmon, Barratt Developments and Taylor Wimpey.

Persimmon is already considering a bid for Cala Group, which is owned by Authorized & Normal, whereas Barratt and Redrow agreed a £2.5bn merger earlier this 12 months.

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On Friday morning, shares in Crest Nicholson have been up about 1.4% to 248p, giving the corporate a market capitalisation of £628m.

Avant is chaired by Mr Fairburn, who left Persimmon in 2018 amid a Metropolis outcry over his huge pay package deal.

Elliott engineered a deal to purchase Avant via Berkeley DeVeer.

HSBC and Financial institution of America are advising Avant on its curiosity in Crest, which is being suggested by Barclays and Jefferies.

Elliott and Crest each declined to remark.