(Alliance News) - Bovis Homes Group PLC said Thursday it has completed the placing being used to partly fund its GBP1.05 billion bid to takeover the two Galliford Try PLC housebuilding business units.
Bovis has placed a total of 13.5 million shares at 1,130 pence each, raising a total of GBP152.2 million. The placing represents about 10% of Bovis' issued share capital before the placing.
Bovis closed 0.7% lower in London on Thursday at 1,155.00p. Galliford ended the session 2.7% higher at 726.00p.
The deal between the pair comes after Galliford in May rejected a GBP1.05 billion bid from rival Bovis for its Linden Homes and Partnerships & Regeneration businesses.
However, in September the two confirmed they had resumed talks. Bovis was to issue shares worth GBP675 million and pay GBP300 million in cash, and also take on GBP100 million of Galliford debt.
The terms announced on Thursday 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, meaning the terms are unchanged from September's announcement.
Bovis is to fund the cash part with a new GBP100 million term loan, existing resources, as well as the now completed fundraise.
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.
Bovis Chief Executive Greg Fitzgerald said: "We are delighted to have successfully completed this fundraise and are pleased to have received the support of our shareholders and a number of new investors. The proposed transaction is an exciting and transformational opportunity to create a leading UK housebuilder and gives Bovis Homes a market leading position in the high growth more resilient partnerships market. We are fully committed on delivering the clear benefits from this combination and further enhancing total shareholder returns."
By George Collard; georgecollard@alliancenews.com and Paul McGowan; paulmcgowan@alliancenews.com
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Galliford Try (GFRD)