Crest Nicholson shares surge after UK homebuilder rejects Bellway takeover offer

Investing.com -- Shares in Crest Nicholson (LON:CRST) surged on Friday after the British homebuilder rejected a 650 million pound takeover offer from peer Bellway (LON:BWY).

In a regulatory filing, the firm said its board found that a revised proposal from Bellway -- which had an impied value of 253 pence per Crest Nicholson share, representing a premium of about 18.8% compared to its closing price on Thursday -- "significantly undervalued" the business.

Crest Nicholson added that accepting the bid was "not in the best interests" of its shareholders.

Earlier this year, the company rejected a prior unsolicited all-share approach from Bellway, saying it too "fundamentally undervalued" Crest Nicholson.

The group said it was "confident in its standalone prospects," citing the conclusion of the review of provisions for completed development sites, its "highly attractive" land portfolio and the leadership of new Chief Executive Martyn Clark, who is replacing outgoing boss Peter Truscott.

Bellway had argued that the deal would boost Crest Nicholson shareholders by granting the company larger scale, a "reduced risk profile, lower indebtedness and an enhanced landbank to capitalize on the long-term structural growth opportunity in the U.K. housing market." London-listed shares in Bellway (LON:BWY) dipped in morning trading.