Bovis homes to acquire Galliford Try's Linden Homes and Partnerships & Regeneration divisions

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Galliford Try plc announced that it has entered into an agreement with Bovis Homes Group PLC regarding a combination of Bovis Homes and Galliford Try's Linden Homes and Partnerships & Regeneration divisions. Linden Homes is the housebuilding division of Galliford Try, one of the UK’s leading housebuilding and construction companies. 

The Transaction values the Housing Businesses at GBP 1.075 billion (USD 1.381 billion). The consideration will be satisfied through:

  1. the issue to Galliford Try shareholders of 63,739,385 new Bovis Homes shares (in aggregate) (the "Consideration Shares"), valued at GBP 675 million (USD 867 million) on the basis of the closing price of a Bovis Homes share on 9 September 2019 (which would equate to 0.57406 Bovis Homes shares for each Galliford Try share based on 111,032,617 Galliford Try shares in issue as at the date of this announcement);
  2. the payment of GBP 300 million (USD 385 million) in cash to Galliford Try (the "Cash Consideration"); and
  3. the assumption by Bovis Homes of Galliford Try's obligations under its GBP 100 million (USD 128 million) 10-year debt private placement.

The Transaction relates solely to a combination of Bovis Homes and Galliford Try's Housing Businesses and does not relate to a merger with Galliford Try. The Potential Transaction envisages Galliford Try remaining a UK-listed construction-focused group owned entirely by Galliford Try shareholders.

The deal is expected to close on January 3, 2020.

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