NOT
FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY,
IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO
SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS
OF THAT JURISDICTION.
THIS IS AN ANNOUNCEMENT FALLING UNDER RULE 2.4 OF THE CITY
CODE ON TAKEOVERS AND MERGERS (THE "CODE") AND DOES NOT CONSTITUTE
A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE. THERE
CAN BE NO CERTAINTY THAT ANY FIRM OFFER WILL BE
MADE.
THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION.
For immediate
release
13 June
2024
Bellway
p.l.c.
Response to Press
Speculation
Bellway p.l.c. ("Bellway") notes the
recent press speculation regarding Crest Nicholson Holdings plc
("Crest Nicholson").
The Board of Bellway confirms that,
on 7 May 2024, it made its latest non-binding all-share offer to
the Board of Crest Nicholson to acquire the entire issued, and to
be issued, share capital of Crest Nicholson (the "Possible Offer"),
which has been rejected by the Board of Crest Nicholson. Under the
terms of the Possible Offer, Crest Nicholson shareholders would
receive 0.093 shares in Bellway for each share they own in Crest
Nicholson. Based on the Bellway share price of 2,718 pence at close
of business on 13 June 2024 (being the latest practicable date
prior to this announcement), the terms of the Possible Offer
represent an implied value of 253 pence per Crest Nicholson share,
and:
· Crest
Nicholson shareholders would hold 17.1 per cent. of the enlarged
group's issued and to be issued share capital;
· a 30.0
per cent. premium to Crest Nicholson's share price at the time the
latest Possible Offer was made; and
· a 20.5
per cent. premium to Crest Nicholson's 3-month volume weighted
average price of 210 pence per Crest Nicholson share.
The Board of Bellway believes that
there is compelling strategic and financial rationale for a
combination of Bellway and Crest Nicholson which would bring
together the strength of each business with complementary brands to
reinforce Bellway's position as a leading UK housebuilder, while
enabling Crest Nicholson shareholders to benefit from the scale of
the combined business, a reduced risk profile, lower indebtedness
and an enhanced landbank to capitalise on the long-term structural
growth opportunity in the UK housing market. In addition, the Board
of Bellway believes a combination would deliver significant
operational synergies and support sustainable shareholder returns
through the cycle.
There can be no certainty that an
offer will ultimately be made.
Rule 2.6(a) of the Code requires
that Bellway, by no later than 5.00 p.m. on 11 July 2024, being the
28th day following the date of this announcement, to either
announce a firm intention to make an offer for Crest Nicholson in
accordance with Rule 2.7 of the Code or announce that it does not
intend to make an offer, in which case the announcement will be
treated as a statement to which Rule 2.8 of the Code applies. This
deadline may be extended with the consent of the Takeover Panel, in
accordance with Rule 2.6(c) of the Code.
In accordance with Rule 2.5(a) of
the Code, Bellway reserves the right to introduce other forms of
consideration and/or vary the mix or composition of consideration
of any offer. In addition, Bellway reserves the right to make an
offer for Crest Nicholson at a lower value or on less favourable
terms than the Possible Offer: (i) with the agreement or
recommendation of the Board of Crest Nicholson; (ii) if a third
party announces a firm intention to make an offer for Crest
Nicholson which, at that date, is of a value less than the value of
the Possible Offer; or (iii) following the announcement by Crest
Nicholson of a Rule 9 waiver transaction pursuant to Appendix 1 of
the Code or a reverse takeover (as defined in the Code). If Crest
Nicholson declares, makes or pays any dividend or distribution or
other return of value or payment to its shareholders, Bellway
reserves the right to make an equivalent reduction to the Possible
Offer.
This announcement is being made
without the consent of Crest Nicholson.
The person responsible for arranging
the release of this announcement on behalf of Bellway is Simon
Scougall, Group General Counsel and Company Secretary.
Enquiries:
Bellway p.l.c.
|
via Powerscourt
|
Simon Scougall, Group General Counsel and Company Secretary
|
|
|
|
Citi
|
+44 (0) 20 7986 4000
|
Joint financial adviser and joint corporate
broker
|
|
Robert Redshaw
|
|
Ram Anand
|
|
Robert Johnson
|
|
|
|
Deutsche Numis
|
+44 (0) 20 7260 1000
|
Joint financial adviser and joint corporate
broker
|
|
Heraclis Economides
|
|
Derek Shakespeare
|
|
Simon Hollingsworth
Oliver Hardy
|
|
Powerscourt
Financial communications adviser
|
+44 (0) 20 7250 1446
|
Justin Griffiths
Nick Dibden
Madeleine Gordon-Foxwell
|
|
|
|
|
|
Important Takeover Code
notes
In accordance with Rule 2.4(c)(iii)
of the Code, Bellway also confirms that it is not aware of any
dealings in Crest Nicholson shares that would require it to offer a
minimum level, or a particular form, of consideration under Rule 6
or Rule 11 of the Code. However, it has not been practicable for
Bellway to make enquiries of all persons acting in concert with it
prior to the date of this announcement in order to confirm whether
any details are required to be disclosed under Rule 2.4(c)(iii) of
the Code. To the extent that any such details are identified
following such enquiries, Bellway shall make an announcement
disclosing such details as soon as practicable, and in any event by
no later than the time it is required to make its Opening Position
Disclosure under Rule 8.1 of the Code.
Further
information
Citigroup Global Markets Limited
("Citi"), which is authorised by the PRA and regulated in the UK by
the FCA and the PRA, is acting exclusively for Bellway and for no
one else in connection with the matters described in this
Announcement and will not be responsible to anyone other than
Bellway for providing the protections afforded to clients of Citi
nor for providing advice in connection with the matters referred to
in this Announcement. Neither Citi nor any of its affiliates,
directors or employees owes or accepts any duty, liability or
responsibility whatsoever (whether direct or indirect,
consequential, whether in contract, in tort, in delict, under
statute or otherwise) to any person who is not a client of Citi in
connection with this Announcement, any statement contained herein
or otherwise.
Numis Securities Limited ("Deutsche
Numis"), which is authorised and regulated in the United Kingdom by
the Financial Conduct Authority, is acting exclusively for Bellway
and no one else in connection with the matters set out in this
announcement and will not regard any other person as its client in
relation to the matters in this announcement and will not be
responsible to anyone other than Bellway for providing the
protections afforded to clients of Deutsche Numis, nor for
providing advice in relation to any matter referred to herein.
Neither Deutsche Numis nor any of its affiliates (nor any of their
respective directors, officers, employees or agents), owes or
accepts any duty, liability or responsibility whatsoever (whether
direct or indirect, whether in contract, in tort, under statute or
otherwise) to any person who is not a client of Deutsche Numis in
connection with this announcement, any statement contained herein
or otherwise.
This announcement is not intended to
and does not constitute an offer to sell or the solicitation of an
offer to subscribe for or buy or an invitation to purchase or
subscribe for any securities or the solicitation of any vote in any
jurisdiction.
The release, publication or
distribution of this announcement in jurisdictions outside the
United Kingdom may be restricted by law and therefore persons into
whose possession this announcement comes should inform themselves
about, and observe such restrictions. Any failure to comply with
such restrictions may constitute a violation of the securities law
of any such jurisdiction.
Disclosure requirements of
the Code
Under Rule 8.3(a) of the Code, any
person who is interested in 1% or more of any class of relevant
securities of an offeree company or of any securities exchange
offeror (being any offeror other than an offeror in respect of
which it has been announced that its offer is, or is likely to be,
solely in cash) must make an Opening Position Disclosure following
the commencement of the offer period and, if later, following the
announcement in which any securities exchange offeror is first
identified. An Opening Position Disclosure must contain details of
the person's interests and short positions in, and rights to
subscribe for, any relevant securities of each of (i) the offeree
company and (ii) any securities exchange offeror(s). An Opening
Position Disclosure by a person to whom Rule 8.3(a) applies must be
made by no later than 3.30 pm (London time) on the 10th business
day following the commencement of the offer period and, if
appropriate, by no later than 3.30 pm (London time) on the 10th
business day following the announcement in which any securities
exchange offeror is first identified. Relevant persons who deal in
the relevant securities of the offeree company or of a securities
exchange offeror prior to the deadline for making an Opening
Position Disclosure must instead make a Dealing
Disclosure.
Under Rule 8.3(b) of the Code, any
person who is, or becomes, interested in 1% or more of any class of
relevant securities of the offeree company or of any securities
exchange offeror must make a Dealing Disclosure if the person deals
in any relevant securities of the offeree company or of any
securities exchange offeror. A Dealing Disclosure must contain
details of the dealing concerned and of the person's interests and
short positions in, and rights to subscribe for, any relevant
securities of each of (i) the offeree company and (ii) any
securities exchange offeror(s), save to the extent that these
details have previously been disclosed under Rule 8. A Dealing
Disclosure by a person to whom Rule 8.3(b) applies must be made by
no later than 3.30 pm (London time) on the business day following
the date of the relevant dealing.
If two or more persons act together
pursuant to an agreement or understanding, whether formal or
informal, to acquire or control an interest in relevant securities
of an offeree company or a securities exchange offeror, they will
be deemed to be a single person for the purpose of Rule
8.3.
Opening Position Disclosures must
also be made by the offeree company and by any offeror and Dealing
Disclosures must also be made by the offeree company, by any
offeror and by any persons acting in concert with any of them (see
Rules 8.1, 8.2 and 8.4).
Details of the offeree and offeror
companies in respect of whose relevant securities Opening Position
Disclosures and Dealing Disclosures must be made can be found in
the Disclosure Table on the Panel's website at
www.thetakeoverpanel.org.uk, including details of the number of
relevant securities in issue, when the offer period commenced and
when any offeror was first identified. You should contact the
Panel's Market Surveillance Unit on +44 (0)20 7638 0129 if you are
in any doubt as to whether you are required to make an Opening
Position Disclosure or a Dealing Disclosure.
Rule 2.9
information
In accordance with Rule 2.9 of the
Code, Bellway confirms that, as at the close of business on 13 June
2024 (being the business day immediately prior to the date of this
announcement), it had in issue 118,975,346 ordinary shares of 12.5
pence each. Bellway does not hold any ordinary shares in treasury.
The International Securities Identification Number (ISIN) of
Bellway's ordinary shares is GB0000904986.
Publication on
website
In accordance with Rule 26.1 of the
Code, a copy of this announcement will be available at
https://www.bellwayplc.co.uk/investor-centre
promptly and in any event by no later than
12 noon on the business day following this announcement. The
content of this website is not incorporated into and does not form
part of this announcement.