UK contractor Galliford Try has rejected a £950m offer by Bovis Homes Group to acquire its Linden Homes and partnerships and regeneration businesses.
The deal would have seen Galliford Try shareholders receiving new Bovis Homes shares pro rata to their current Galliford Try shareholdings and would have left Galliford Try as an independent group focused on construction, reports Construction Manager.Â
Galliford Try said it had "carefully considered" Bovis’ proposal together with financial adviser Rothschild & Co but rejected it because it believes it "does not fully value" the Linden Homes and partnerships and regeneration divisions and "is not in the interest of shareholders".
The approach from Bovis came days after Galliford Try confirmed that it was cutting 350 jobs in its construction division, as it tries to make savings to bring its operating margins up to a target of 2% by 2021.
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In February this year, Galliford Try revealed it was making a £26m write-off related to its now-completed Aberdeen Western Peripheral Route (AWPR).
Its Linden Homes arm saw revenue fall 10% to £392.1m, with operating profit down 5% to £76.8m. Revenue at its partnerships and regeneration arm increased 27% to £284.9m, with operating profit up 34% to £14.5m over the same period.
Image: Homes built by Galliford Try’s Linden Homes arm