Crest Nicholson Takeover Rumours (CRST)

I’m surprised Barratt didn’t take this over - it’s so ripe for a takeover

Crest Nicholson sees house completions plummet and profits slump https://www.mortgagestrategy.co.uk/news/crest-nicholson-sees-house-completions-plummet-and-profits-slump/ Martyn Clarke, CCO PSN to takeover as CEO. Persimmon’s Martyn Clark is taking over from Peter Truscott as chief executive of house-builder Crest Nicholson later this year. https://www.theconstructionindex.co.uk/news/view/crest-nicholson-turns-to-persimmon-for-new-ceo

Barclays updated to overweight and 2.60 target just before Christmas. Paul Scott thought 5 percent fall was about right for yesterday’s news, but it regained most of that fall by close. He again reiterated vulnerable to takeover. Appears to be a small short on it last week, which seems a bit reckless in light of the news all being out now apart from actual results, and a real possibility of a bid. Lot of argument about valuation. Clearly there is strength in the price at this level and there were some reasonable size purchases. The improved housing market also adds too the attractive asset value. Quite honestly everything is risky in current climate. If you don’t like risk don’t play. If you do there is money to be made here imo.

Thanks Porsche, makes sense and I agree :) But apart from John Crace from The Guardian who else is speculating on a takeover? I've not seen any other talk anywhere... was he holding a boatload of shares and wanted a bounce to get out after today's ugly open? I took advantage and sold half of mine in the last half hour.

I can see CRST attracting a takeover. Simple terms - £550m mkt cap divided by its short term landbank of 15,000 plots = £37k/plot. Builders are paying double that plot value for short term land in Crest's operating area. Plus a strategic landbank of c.22,000 plots. It's a simple view but, to me, it doesn't seem a demanding valuation and is a great play on the UK's broken planning system!

www.theguardian.com/business/2024/jan/15/uk-housebuilder-crest-nicholson-warns-profits-takeover-interest-rates Takeover speculation... really!?