Rule 2.8 announcement

RNS Number : 6815A

Redrow PLC

28 March 2017

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

FOR IMMEDIATE RELEASE

Redrow plc ("Redrow")

28 March 2017

This is an announcement falling under Rule 2.8 of the UK City Code on Takeovers and Mergers (the "Code")

Redrow announces that it does not intend to make an offer for Bovis Homes Group plc ("Bovis" or "the Company")

Further to the announcement made by Redrow on 12 March 2017 and following additional analysis, the Board of Redrow has determined that it is not in its shareholders' best interests to increase its proposal to Bovis above the level which was rejected by the Board of Bovis. Given this, Redrow confirms that it does not intend to make an offer for Bovis. Redrow will instead continue to focus on its highly successful organic growth strategy that has delivered approximately 55% compound annual growth in pre-tax profits from financial years 2012 to 2016. Redrow's strong land bank and disciplined approach to its operations means it is well-placed to both continue to grow its profits and progressively increase dividend payout rates to 33% in the medium term.

As a result of this announcement, Redrow 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, Redrow reserves the right to announce or participate in an offer or possible offer for Bovis and/or to take any other action which would otherwise be restricted under Rule 2.8 of the Code within 6 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 arranging the release of this announcement on behalf of Redrow is Graham Cope, Company Secretary.

Website publication

In accordance with Rule 26.1 of the Code, a copy of this announcement will be published on the Redrow website (www.redrowplc.co.uk) by no later than 12 noon on 29 March 2017. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement. 

Enquiries:

Redrow plc Steve Morgan, Chairman Barbara Richmond, Group Finance Director	[phone]
Barclays Bank PLC, acting through its Investment Bank (Financial Adviser and Corporate Broker to Redrow) Alisdair Gayne Mark Todd Tom MacDonald Instinctif Partners (PR Adviser to Redrow) Mark Garraway Helen Tarbet James Gray	[phone] [phone]

Barclays Bank PLC, acting through its Investment Bank ("Barclays"), which is authorised by the Prudential Regulation Authority and regulated in the United Kingdom by the Financial Conduct Authority and the Prudential Regulation Authority, is acting for Redrow and no one else in relation to the matters referred to in this announcement, and will not be responsible to anyone other than Redrow for providing the protections afforded to clients of Barclays nor for providing advice in relation to this announcement or any other matter referred to in this announcement.

Concert parties of Mr Morgan

At the Annual General Meeting on 7 November 2016 the Redrow shareholders approved resolutions authorising the directors of Redrow to undertake share repurchases (the "Buyback Resolution") and approving a waiver of Rule 9 of the Code in connection with an increase in the shareholding of Steve Morgan and his concert parties as a result of any such share repurchases (up to a maximum of 44.88 per cent. of the issued share capital of Redrow) (the "Waiver Resolution"). Redrow notes that the Waiver Resolution was not effective as it did not take account of the shareholdings of Ashley Lewis, Vincent Fairclough, Victoria Fairclough, Bryan Dix, the Housing Deposit Trust and Toscafund Asset Management LLP (which has since, as far as Redrow is aware, entirely disposed of its interest in Redrow) which the executive of the Takeover Panel has confirmed form part of Mr Morgan's concert party. As a result, no share repurchases have taken place nor shall take place under the authority granted by the Buyback Resolution.

 

END

 

 

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