A consortium of U.K. bank HBOS and property magnate Tom Hunter said on Thursday it had agreed a takeover of Crest Nicholson, valuing the U.K. housebuilder at around 715 million pounds ($1.4 billion).
Castle Bidco said it would pay 620 pence per share in cash for each Crest share and a final dividend of 9.7 pence per share would be paid by Crest.
Castle Bidco said the offer represented a premium of 10.2% to 571.5 pence per Crest Nicholson share, the closing price on Nov. 9, the day before Crest said it had received an approach.
Crest said on Wednesday talks with the consortium were continuing, as the deadline for a takeover bid was pushed to March 8, and reiterated it would recommend a 620 pence per share bid, but there could be no certainty an offer would be made.
In January Crest said Castle Bidco had been considering making a 700 million pound cash offer at 620 pence per share, along with the right to the final dividend of 9.7 pence a share.
Shares in Crest closed at 610 pence on Wednesday.