Crest Nicholson rejects Bellway’s £650m takeover offer

This has led to Crest Nicholson issuing five profit warnings since August 2023, with its share price down by nearly 50pc since its pandemic peak in May 2021.  

Bellway’s offer last month valued Crest Nicholson at 253p per share, a premium of 18.8pc on Crest Nicholson’s share price at the end of the day on Thursday.

A spokesman for the company said: “Crest Nicholson remains confident in its standalone prospects, in particular given conclusion of the review of provisions for completed development sites supported by external consultants, its highly attractive land portfolio and the new leadership of Martyn Clark.”

However, Anthony Codling, analyst at RBC Capital Markets, warned that Mr Clark will face a difficult turnaround job.

Mr Codling said: We appreciate why the management team at Crest rejected the offer, but following yesterday’s profit warning, shareholders may have wished management had asked their opinion. 

“Yesterday’s profit warning has weakened Crest’s hand and we believe the incoming chief executive who starts today will have his work cut out from day one.”