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07 Nov 2019 | 08:00

Bovis Homes to acquire Galliford Try's housing business in £1.1bn deal

Bovis Homes said it had agreed to acquire Galliford Try's Linden Homes and Partnerships & Regeneration businesses for £1.075bn in a cash and shares deal. The homebuilder said it would place shares to raise cash to fund part of the deal.

Bovis expected the enlarged group would achieve estimated recurring run-rate pre-tax cost synergies of at least £35m per annum by the end of the second full financial year following completion of the deal.

The acquisition would be low double-digit earnings per share enhancing in the first full financial year post-completion with further significant earnings per share enhancement in the second full financial year post-completion.

As part of the deal, Galliford Try Shareholders would receive a stake of 29.3% in the enlarged group.

Bovis Homes also said it would place up to 13,472,591 shares, representing approximately 9.99% of its existing shares in an effort to raise gross proceeds of up to £157m. The proceeds of the placing would be used to fund part of the cash component of the acquisition.

Bovis shareholders would be required to vote to approve of the acquisition at a meeting on 2 December 2019. At 8:00am: (LON:BVS) Bovis Homes Group PLC share price was -1.5p at 1161.5p

Story provided by StockMarketWire.com
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