Economy Galliford restarts talks with Bovis Homes to sell housing units

Galliford restarts talks with Bovis Homes to sell housing units

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FILE- A builder works at a Bovis homes housing development near Bolton, Britain, July 9, 2008.

Britain’s Galliford Try Plc (GFRD.L) said on Tuesday it had restarted preliminary talks to sell its residential units to housebuilder Bovis Homes Group Plc (BVS.L).

If a deal goes through, it would value Linden Homes and Partnerships & Regeneration divisions at about 1.08 billion pounds ($1.33 billion), the two companies said, adding that a potential deal does not imply a merger of the two companies.

Bovis was in talks with Galliford to buy its residential units for 950 million pounds earlier this year, but the firms abandoned the deal in May after Galliford said it was not in the interests of shareholders.

As part of the new deal, Galliford shareholders will get 0.57406 shares of Bovis Homes for each Galliford share they own, implying a value of 675 million pounds, and Galliford will be paid 300 million pounds in cash.

Galliford, known for projects ranging from the redevelopment of the Wimbledon tennis venue to hospitals and city bypasses, has been reviewing its operations and reducing the size of its faltering construction business to focus on more profitable sectors.

Bovis will take on Galliford’s 10-year debt worth 100 million pounds, with shareholders of the British builder owning about 29.3% of the enlarged Bovis Homes entity, the companies said.

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