Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
Proactiveinvestors
www.proactiveinvestors.co.uk
Deal Proactiveinvestors Tax Free* Losses can exceed
your initial deposit
*subject to change and depends on individual circumstances.

One of the UK's leading free websites for financial news, comment and analysis and financial tools & data, further enhanced by investor forums in London and Manchester

Pdf

Crest Nicholson to return to the market

Crest Nicholson has a short term land bank of which over 95% is focused on the South of England, with an estimated gross development value of circa £3.9bn, as at 31 October 2012.

Crest Nicholson, the house builder which went private just before the credit crunch, is planning a return to the stock market.

The company is looking to raise around £50mln through its stock market flotation.

A number of existing shareholders will also look to reduce their holdings by selling their shares as part of the stock market flotation; among those cashing in are Värde Investment Partners and Deutsche Bank, plus certain directors, senior managers and employers of Crest Nicholson.

Following the share offer, the free float – the proportion of shares not held by committed long term holders - is expected to be at least 35% of the issues share capital of Crest Nicholson.

The group’s shares were previously listed on the London stock exchange between 1969 and 2007, but was taken private by a joint venture between the Halifax Bank of Scotland and West Coast Capital.

At that time, the takeover valued the company at £715mln, some 2.4 times the net asset value of the company at 31 October 2006.

In the fashion of private equity firms, the buyers loaded the company up with debt, but the timing was poor as the housing market went into a slump as mortgage lenders faced a liquidity shortage.

Since 2007 gearing has been reduced by two restructurings, including a debt-for-equity swap, and Stephen Stone, chief executive of Crest Nicholson claimed the south of England focused operator now has a “robust balance sheet”.

“The housing market is entering a period of gradual recovery and with our emphasis on the South of England, including London, and the continued support for the new homes market from government, we are well positioned to generate value for shareholders," Stone claimed.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.