Deeside housebuilder Redrow abandons Bovis merger interest

Deeside based Redrow has confirmed it is not planning to make another bid for struggling rival Bovis Homes.

The Ewloe headquartered housebuilder has walked away from any deal with Bovis Homes saying it was not in the best interests of shareholders to raise its offer.

Bovis rejected the original Redrow proposal, a move which clears the way for rival housebuilder Galliford Try to step in.

Under offer from Redrow, Bovis shareholders would have owned around 32.4% of the combined group under the deal, and the offer valued Bovis at £1.09 billion.

In a statement this morning Redrow said:

“We will instead continue to focus on its highly successful organic growth strategy that has delivered approximately 55% compound annual growth in pre-tax profits from financial years 2012 to 2016.

“Redrow’s strong land bank and disciplined approach to its operations means it is well-placed to both continue to grow its profits and progressively increase dividend payout rates to 33% in the medium term.”

Deeside housebuilder Redrow reports a record first half to year