Crest Nicholson attracts fresh bidding interest after shrugging off Bellway

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Crest Nicholson has attracted fresh bidding interest after rejecting a possible offer from rival housebuilder Bellway, as the housing sector was boosted by a Labour election victory.

The Surrey-based company said it had received an all-share proposal from Avant Homes to combine the two housebuilders.

Avant – an affordable housebuilder focused on the Midlands, the North of England, and Scotland – is backed by US investment firm Elliott Advisors.

Elliott came to the fore earlier this year when it swooped in with multiple proposed offers to buy British electricals giant Currys, all of which were rejected by the retailer.

Crest Nicholson last month said it had rejected a string of offers from competitor Bellway, including one worth £650 million.

The housebuilder said it felt the offers undervalued it and its future prospects.

Avant’s proposal is understood to represent a 20% premium to Bellway’s 253p per share offer, as the firm jostles to put a more attractive offer on the table.

On Friday afternoon, Crest said it was “not currently minded to engage in discussions regarding a potential transaction” with Avant when it could still receive an offer from Bellway.

Avant is chaired by Jeff Fairburn, the former boss of housing giant Persimmon.

Mr Fairburn left his job at Persimmon in 2018 having faced criticism from investors for receiving almost £85 million in remuneration over a two-year period.

Meanwhile, London-listed housebuilders enjoyed a boost to their share price on Friday after overnight election results revealed that the Labour Party had achieved a landslide victory at the polls.

One of the party’s key campaign pledges was to reform the planning system to build 1.5 million new homes in the next parliament.

Investors were eager to cash in on the likely lift the plans will bring builders, with Persimmon, Vistry, Taylor Wimpey and Barratt Developments the biggest risers on the FTSE 100 on Friday.

Shares in FTSE 250-listed Crest Nicholson were about 4% higher on Friday afternoon.