(Alliance News) - Galliford Try PLC on Thursday said a scheme of arrangement, in relation to the disposal of two of its housebuilding units to Bovis Homes PLC, has become effective.
Galliford in November agreed to sell its Linden Homes and Partnerships & Regeneration to Bovis, after previously rebuffing an offer from the FTSE 250 housebuilder.
The deal will see Bovis issue 63.8 million new shares to Galliford, valued at GBP675 million, pay GBP300 million in cash, and take over Galliford's GBP100 million 10-year private debt placement.
The transaction values the two Galliford businesses at a combined GBP1.14 billion, and gives Galliford a 29% stake in the expanded Bovis group. It leaves Galliford with its construction business.
The agreement came after Galliford last May rejected a GBP1.05 billion bid from Bovis for its Linden Homes and Partnerships & Regeneration businesses.
However, in September the two confirmed they had resumed talks.
Galliford shares closed 3.1% higher at 886.00 pence each in London on Thursday. Bovis closed 1.7% higher at 1,381.00p.
By Eric Cunha; ericcunha@alliancenews.com
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Galliford Try (GFRD)