THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN OR INTO OR FROM, ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.
THIS IS AN ANNOUNCEMENT FALLING UNDER RULE 2.8 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE").
FOR IMMEDIATE RELEASE
Galliford Try Plc ("Galliford Try" or the "Group")
Statement re Bovis Homes Group Plc ("Bovis")
On 12 March 2017, Galliford Try announced that it had approached the Board of Bovis and proposed an all share merger between Galliford Try and Bovis. Galliford Try now confirms that it is no longer considering a combination with Bovis.
Since the approach, the leadership teams of Galliford Try and Bovis have held discussions over a number of weeks that have been largely constructive. It has, however, become clear to the Board of Galliford Try that it is not possible to secure the support of the Board of Bovis on terms that represent the best interests of Galliford Try shareholders.
The Board believes that Galliford Try has a strong future based on its current business model. Galliford Try will continue to focus on delivering the five-year organic growth strategy set out at its Capital Markets Day event on 21 February 2017. This strategy is targeting sustainable growth and strong returns across each of Galliford Try's businesses; Housebuilding, Partnerships & Regeneration and Construction. Targets include growth in Group profit before tax to 2021 of at least 60%, a five year compound annual growth rate of dividends of at least 5% and a return on the Group's net assets in 2021 of at least 25%.
As a result of this announcement, Galliford Try will, except with the consent of the UK Panel on Takeovers and Mergers, be bound by the restrictions contained in Rule 2.8 of the Code.
For the purposes of Rule 2.8 of the Code, Galliford Try reserves the right to announce an offer or possible offer or participate in an offer or possible offer for Bovis and / or take any other action which would otherwise be restricted under Rule 2.8 of the Code within six months after the date of this announcement in the circumstances described in note 2 to Rule 2.8 of the Code.
The person responsible for the release of this announcement on behalf of Galliford Try is Kevin Corbett, General Counsel & Company Secretary.
In accordance with Rule 26.1 of the Code, a copy of this announcement will be published on the Galliford Try website (www.gallifordtry.co.uk) by no later than 12 noon on 6 April 2017. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.
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For further information please contact:
James Macey White
Tel: +44 (0) 207 353 4200
Notes to Editors
Galliford Try is a leading UK housebuilding, regeneration and construction company listed on the London Stock Exchange with a market cap. of c.£1.3bn. It operates through three divisions:
Housebuilding: Linden Homes (which accounted for ~85% of Galliford Try's FY16 operating profit) is the UK's eighth largest housebuilder by completions. It has a landbank of approximately 11,500 plots and operates nationally, with particular strength in the South East.
Partnerships and Regeneration: Operates as a contractor and developer and is a key driver of growth for Galliford Try. Capital light business that generates high returns with low levels of risk. In FY16, the division delivered over 2,100 units, with ~25% delivered as private, mixed-tenure properties.
Construction: A high quality, UK contractor focused on delivering projects in the public and regulated sectors.
For the last financial year to 30 June 2016, Galliford Try reported Group revenue of c.£2.5bn and profit before tax of £135m. Reported return on net assets for the same period was 25.3%.